Question
The Printing Department of a city is properly accounted for by the city as an Internal Service Fund.For the year 2020, the Printing Department estimates
The Printing Department of a city is properly accounted for by the city as an Internal Service Fund.For the year 2020, the Printing Department estimates that it's direct costs to provide printing services to other city departments will total $2,500,000, and estimates that its indirect costs will total $200,000. Based on previous year experience, the Printing Department estimates during calendar year 2020 that each of the 5 custom printers will be used for a total of 2,000 hours during the year, and that it will utilize 6 printer operators for 250 standard working days.Based on this information, what should the city's Printing Department charge other city departments for a printing job in 2020?
a.$250 per printing machine hour, or $1,667 per 1 day's printer operator shift
b.$270 per printing machine hour, or $1,800 per 1 day's printer operator shift
c.The Printing Department should not charge othe departments of the same government for printing jobs.
d.The actual cost per each printing job
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