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The Charmatz Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data
The Charmatz Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data apply to the coming budget year: Budgeted costs of operating the copying facility for 400,000 to 600,000 copies Fixed costs per year Variable costs $60,000 4 cents (0.04) per copy Budgeted long-run usage in copies per year. Marketing Department Operations Department 20,000 copies 380,000 copies Budgeted amounts are used to calculate the allocation rates Actual usage for the year by the Marketing Department was 90,000 copies and by the Operations Department was 360,000 copies. If a dual- rate cost-allocation method is used what amount of copying facility costs will be budgeted for the Operations Department? O A. $63,200 O B. $60,000 O C. $62,400 OD. S60,800
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