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Copies Plus Print operates a copy business at two different locations. Copies Plus Print has one support department that is responsible for cleaning, service, and maintenance of its copying equipment. The costs of the support department are allocated to each copy center on the basis of total copies made. During the first month, the costs of the support department were expected to be $200,000. Of this amount, $60,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $128,000 and actual fixed costs of $72,000. Normal and actual activity (copies made) are as follows: 4 Normal activity (copies) Actual activity (copies) Copy Center Copy Center 1 2 600,000 500,000 400,000 440,000

Copies Plus Print operates a copy business at two different locations. Copies Plus Print has one support department that is responsible for cleaning, service, and maintenance of its copying equipment. The costs of the support department are allocated to each copy center on the basis of total copies made. During the first month, the costs of the support department were expected to be $200,000. Of this amount, $60,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $128,000 and actual fixed costs of $72,000. Normal and actual activity (copies made) are as follows: 4 Normal activity (copies) Actual activity (copies) Copy Center Copy Center 1 2 600,000 500,000 400,000 440,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Support department costs NOT allocated to the two copy centers are: O $6,000. $9,840. $8,400. O$22,000.
Transcribed Image Text:Support department costs NOT allocated to the two copy centers are: O $6,000. $9,840. $8,400. O$22,000.
Copies Plus Print operates a copy business at two different locations. Copies Plus Print has one support department that is responsible for cleaning, service, and maintenance of its copying equipment. The costs of the support department are allocated to each copy center on the basis of total copies made. During the first month, the costs of the support department were expected to be $200,000. Of this amount, $60,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $128.000 and actual fixed costs of $72,000. Normal and actual activity (copies made) are as follows: 4 Normal activity (copies) Actual activity (copies) Copy Center Copy Center 1 2 600,000 500,000 400,000 440,000
Transcribed Image Text:Copies Plus Print operates a copy business at two different locations. Copies Plus Print has one support department that is responsible for cleaning, service, and maintenance of its copying equipment. The costs of the support department are allocated to each copy center on the basis of total copies made. During the first month, the costs of the support department were expected to be $200,000. Of this amount, $60,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $128.000 and actual fixed costs of $72,000. Normal and actual activity (copies made) are as follows: 4 Normal activity (copies) Actual activity (copies) Copy Center Copy Center 1 2 600,000 500,000 400,000 440,000
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