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 | $61,000 |
| Variable costs | 6 cents (0.06) | per copy |
Budgeted long-run usage in copies per year:
| Marketing Department | 100,000 | copies |
| Operations Department | 400,000 | 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 320,000 copies. If a single-rate cost-allocation method is used, what amount of copying facility costs will be budgeted for the Marketing Department? (Round any intermediary calculations to the nearest cent.)
◦ $18,200
◦ $6000
◦ $12,200
◦ $21,250
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