The Charmatz Corporation has a central copying facility. The copying facility has only two users, the Marketing
Question:
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 $66,000
Variable costs
4 cents (0.04) per copy
Budgeted
Long−run usage in copies per year:
Marketing Department 110,000 copies
Operations Department 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 single−rate cost−allocation method is used, what amount of copying facility costs will be budgeted for the Marketing Department?
A. $4,400
B. $18,920
C. $14,520
D. $19,525
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Quantitative Analysis for Management
ISBN: 978-0132149112
11th Edition
Authors: Barry render, Ralph m. stair, Michael e. Hanna