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 8,100,000 pages Budgeted usage: Software Development 1,700,000 pages Training 3,100,000 pages Management 2,500,000 pages Cost equation $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? Multiple Choice $116,740. $100,370. $45,630. $162,000.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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 | 8,100,000 | pages |
| Budgeted usage: | ||
| Software Development | 1,700,000 | pages |
| Training | 3,100,000 | pages |
| Management | 2,500,000 | pages |
| Cost equation | $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?
Multiple Choice
-
$116,740.
-
$100,370.
-
$45,630.
-
$162,000.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
