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 8,030,000 pages Budgeted usage: Software Development 1,630,000 pages Training 3,333,000 pages Management 2,127,000 pages Cost equation $310,000 + $0.02 per page If DCC uses a dual-rate for allocating its costs, how much cost will be allocated to the Management Department, assuming the Management Department actually made 2,130,000 copies during the year? Multiple Choice $84,670. $86,790. $86,275. $135,600.
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 8,030,000 pages Budgeted usage: Software Development 1,630,000 pages Training 3,333,000 pages Management 2,127,000 pages Cost equation $310,000 + $0.02 per page If DCC uses a dual-rate for allocating its costs, how much cost will be allocated to the Management Department, assuming the Management Department actually made 2,130,000 copies during the year? Multiple Choice $84,670. $86,790. $86,275. $135,600.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | 8,030,000 | pages |
| Budgeted usage: | ||
| Software Development | 1,630,000 | pages |
| Training | 3,333,000 | pages |
| Management | 2,127,000 | pages |
| Cost equation | $310,000 + $0.02 | per page |
If DCC uses a dual-rate for allocating its costs, how much cost will be allocated to the Management Department, assuming the Management Department actually made 2,130,000 copies during the year?
Multiple Choice
-
$84,670.
-
$86,790.
-
$86,275.
-
$135,600.
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