Budgeted costs of operating the copying facility for 300,000 to 500,000 copies Fixed costs per year...

 

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Budgeted costs of operating the copying facility for 300,000 to 500,000 copies Fixed costs per year Variable costs Budgeted long-run usage in copies per year: Marketing Department Operations Department $66,000 5 cents (0.05) per copy 110,000 copies 390,000 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. Budgeted costs of operating the copying facility for 300,000 to 500,000 copies Fixed costs per year Variable costs Budgeted long-run usage in copies per year: Marketing Department Operations Department $66,000 5 cents (0.05) per copy 110,000 copies 390,000 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.

Answer rating: 100% (QA)

To calculate the amount of copying facility costs allocated to the Operations Department using a dualrate costallocation method we need to consider bo... View the full answer