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 | $64,000 |
| Variable costs | 5 cents (0.05) | per copy |
Budgeted long-run usage in copies per year:
| Marketing Department | 90,000 | copies |
| Operations Department | 310,000 | copies |
Budgeted amounts are used to calculate the allocation rates.
Actual usage for the year by the Marketing Department was 120,000 copies and by the Operations Department was 380,000 copies. If a dual-rate cost-allocation method is used, what amount of copying facility costs will be budgeted for the Operations Department?
◦ $65,100
◦ $68,600
◦ $64,140
◦ $67,640
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