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The Copycats Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data
The Copycats 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 $60,000 Variable costs 3 cents (.03) per copy Budgeted long-run usage in copies per year: Marketing Department 120,000 copies Operations Department 380,000 copies Budgeted amounts are used to calculate the allocation rates. Actual usage for the year by the Marketing Department was 80,000 copies and by the Operations Department was 360,000 copies. What is the total cost of operating the copying department assuming 400,000 copies are made per year? A) $12,000 B) $60,000 C) $72,000 D) $75,000
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