The Document Creation Center (DCC) for Alegis Corp. provides photocopying and document services for three departments in the St. Paul office. The following budget has been prepared for the year. Available capacity Budgeted usage: Software Development Training Management Cost equation 13,000,000 pages 2,600,000 pages 4,875,000 pages 3,900,000 pages $455,000 + $0.03 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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Document Creation Center (DCC) for Alegis Corp. provides photocopying and document services
for three departments in the St. Paul office. The following budget has been prepared for the year.
Available capacity
Budgeted usage:
Software
Development
Training
Management
Cost equation
13,000,000 pages
2,600,000 pages
4,875,000 pages
3,900,000 pages
55,000+ $0.03 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?
Transcribed Image Text:The Document Creation Center (DCC) for Alegis Corp. provides photocopying and document services for three departments in the St. Paul office. The following budget has been prepared for the year. Available capacity Budgeted usage: Software Development Training Management Cost equation 13,000,000 pages 2,600,000 pages 4,875,000 pages 3,900,000 pages 55,000+ $0.03 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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