Printing	Distributing	Operating Dept 1	Operating Dept 2
Budget	$150,000	$200,000	$200,000	$300,000
Pages	-	400	100	150
Miles	1000	-	450	550

Q1: Hardy Inc. has two operating departments (1 and 2) and is considering renting a new machine to help automate the printing process. The normal rental for the machine is $25/hour, but for rentals that exceed 1,000 hours the rental rate drops to $22/hour.

Operating Dept 1 needs the machine for 300 hours.

Operating Dept 2 needs the machine for 900 hours.

If Hardy uses the incremental method and Operating Department 2 is the primary user, how much of the cost will be allocated to Department 1?

Q2: Hardy Inc. has two operating departments (1 and 2) and is considering renting a new machine to help automate the printing process. The normal rental for the machine is $25/hour, but for rentals that exceed 1,000 hours the rental rate drops to $22/hour.

Operating Dept 1 needs the machine for 300 hours.

Operating Dept 2 needs the machine for 900 hours.

If Hardy uses the stand alone method, how much of the cost will be allocated to Department 1?

***Answers 6900 and 7350 are incorrect for number 1 and 2.

**multiple cheggs have gotten this wrong with those answers pleases dont answer it if you get the same, thank you.

we will all upvote it!