Kobuk Valley Inc. uses a central copying facility. The copying facility has only two users, Marketing and Operations. The following data apply to the coming budget year and are within the relevant range: Budgeted Data: Fixed costs Variable costs (per copy) Marketing Department Budgeted Copies Operations Department Budgeted Copies Practical Capacity Copies $127,000 $0.07 436,000 295,000 991,000 Actual usage for the year by the Marketing Department was 435,538 copies and by the Operations Department was 244,943 copies. a single-rate supply of capacity based cost-allocation method is used, what amount of copying facility costs will be allocated for he Operations Department?

Kobuk Valley Inc. uses a central copying facility. The copying facility has only two users, Marketing and Operations. The following data apply to the coming budget year and are within the relevant range: Budgeted Data: Fixed costs Variable costs (per copy) Marketing Department Budgeted Copies Operations Department Budgeted Copies Practical Capacity Copies $127,000 $0.07 436,000 295,000 991,000 Actual usage for the year by the Marketing Department was 435,538 copies and by the Operations Department was 244,943 copies. a single-rate supply of capacity based cost-allocation method is used, what amount of copying facility costs will be allocated for he Operations Department?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...

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