The Copy Department in the College of Business at State University provides photocopying service for...
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Accounting
The Copy Department in the College of Business at State University provides photocopying service for both the Marketing and Economics Department. The following budget has been prepared for the year.
Available capacity
7,250,000
pages
Budgeted usage:
Marketing
4,800,000
pages
Economics
2,400,000
pages
Cost equation
$156,000 + $0.025
per page
If the Copy Department uses a dual-rate for allocating its costs, how much cost will be allocated to the Marketing Department, assuming the Marketing Department actually made 4,200,000 copies during the year?
A.$183,000.
B.$181,250.
C.$209,000.
D.$207,250.
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