A. ABC Co. 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 $60,000

Variable costs 3 cents (.03) per copy

Budgeted long-run usage in copies per year:

Marketing Department 120,000 copies

Operations Department 380,000 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 360,000 copies. ABC Co. uses a dual rate system for allocating support costs.

1) If a dual-rate cost-allocation method is used, what is the total amount of copying facility costs that will be allocated to the Operations Department? Show your calculation of fixed costs allocated and variable costs allocated to arrive at the total costs allocated to earn maximum partial credit.