The Dantz Corporation has a central copying facility. The copying facility has only two users,...
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Accounting
The Dantz 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 400,000 to 600,000 copies: Fixed costs per year$60,000 Variable costs3 cents (.03) per copy Budgeted long-run usage in copies per year: Marketing Department120,000 copies Operations Department380,000 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. If a dual-rate cost-allocation method is used, what amount of copying facility costs will be budgeted for the Operations Department?
| $57,000 | ||
| $56,400 | ||
| $60,490 | ||
| $59,890 |
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