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Author Question: The Charmatz Corporation has a central copying facility. The copying facility has only two users, ... (Read 90 times)

rl

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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 apply to the coming budget year:

Budgeted costs of operating the copying facility
for 300,000 to 500,000 copies
:
Fixed costs per year$66,000
Variable costs5 cents (0.05) per copy
Budgeted long-run usage in copies per year:
Marketing Department110,000 copies
Operations Department390,000 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 360,000 copies. If a dual-rate cost-allocation method is used, what amount of copying facility costs will be allocated to the Operations Department? Assume budgeted usage is used to allocate fixed copying costs and actual usage is used to allocate variable copying costs.
◦ $69,000
◦ $117,000
◦ $70,980
◦ $69,480


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Marked as best answer by rl on Mar 6, 2021

BAOCHAU2803

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rl

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Reply 2 on: Mar 6, 2021
Wow, this really help


fatboyy09

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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