The Charmatz Corporation has a central copying facility. Its offices can supply up to 800,000 copies per year. The copying facility has only two users, Department A and Department B. The following data apply to the coming budget year: Budgeted costs of Copy Support Department are: Fixed costs per year $70,000 per year Variable costs $0.02 per copy The operating departments have estimated their usage as follows: Department A 120,000 copies Department B 480,000 copies Actual usage for the year was: Department A 150,000 copies Department B 450,000 copies Budgeted amounts are used to calculate the allocation rates. Actual usage is used to allocate costs under the single-rate method. Actual usage is used to allocate variable costs and budgeted usage is used to allocate fixed costs under the dual-rate method. How will costs be allocated under the following conditions: (a) single-rate cost-allocation method (Round any intermediary calculations to the nearest cent.) Department A _________ Department B ____________ (b) dual-rate cost allocation method (Round any intermediary calculations to the nearest cent.) Department A ____________ Department B ____________
The Charmatz Corporation has a central copying facility. Its offices can supply up to 800,000 copies per year. The copying facility has only two users, Department A and Department B. The following data apply to the coming budget year:
Budgeted costs of Copy Support Department are:
Fixed costs per year $70,000 per year
Variable costs $0.02 per copy
The operating departments have estimated their usage as follows:
Department A 120,000 copies
Department B 480,000 copies
Actual usage for the year was:
Department A 150,000 copies
Department B 450,000 copies
Budgeted amounts are used to calculate the allocation rates. Actual usage is used to allocate costs under the single-rate method. Actual usage is used to allocate variable costs and budgeted usage is used to allocate fixed costs under the dual-rate method. How will costs be allocated under the following conditions:
(a) single-rate cost-allocation method (Round any intermediary calculations to the nearest cent.)
Department A _________
Department B ____________
(b) dual-rate cost allocation method (Round any intermediary calculations to the nearest cent.)
Department A ____________
Department B ____________
Trending now
This is a popular solution!
Step by step
Solved in 1 steps
