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Author Question: The Charmatz Corporation has a central copying facility. The copying facility has only two users, ... (Read 35 times)

nautica902

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on: Mar 6, 2021
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 costs5 cents (0.05) per copy
Budgeted long-run usage in copies per year:
Marketing Department90,000 copies
Operations Department310,000 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
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by nautica902 on Mar 6, 2021

SamMuagrove

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Reply #1 on: Mar 6, 2021
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nautica902

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Reply 2 on: Mar 6, 2021
Excellent

mohan

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Reply 3 on: Yesterday
Wow, this really help

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