The Document Creation Center(DCC) for Arlington Corp. providesphotocopying and documentservices for three departments in theMinneapolis office. The followingbudget has been prepared for theyear.AvailablecapacityBudgetedusage:SoftwareDevelopmentTrainingManagementCostequation8,100,000 pagesMultiple Choice$162,000.$116,740.$100,370.$45,630.1,700,000 pages3,100,000 pages2,500,000 pages$285,000+ $0.02perpageIf DCC uses a dual-rate for allocatingits costs based on usage, how muchcost will be allocated to the SoftwareDevelopment Department?

Given in the question: Cost Equation = $285,000 + $0.02 per page Company is using the dual rate…

Answered: If DCC uses a dual-rate for allocating…

If DCC uses a dual-rate for allocating its costs based on usage, how much cost will be allocated to the Software Development Department?

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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Question

100%

The Document Creation Center
(DCC) for Arlington Corp. provides
photocopying and document
services for three departments in the
Minneapolis office. The following
budget has been prepared for the
year.
Available
capacity
Budgeted
usage:
Software
Development
Training
Management
Cost
equation
8,100,000 pages
Multiple Choice
$162,000.
$116,740.
$100,370.
$45,630.
1,700,000 pages
3,100,000 pages
2,500,000 pages
$285,000
+ $0.02
per
page
If DCC uses a dual-rate for allocating
its costs based on usage, how much
cost will be allocated to the Software
Development Department?

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