The Document Creation Center (DCC) for Arlington Corporation provides photocopying and document services for three departments in the Min office. The following budget has been prepared for the year. Available capacity Budgeted usage: Software Development Training Management Cost equation 8,020,000 pages 1,620,000 pages 3,322,000 pages 2,118,000 pages $300,000+ $0.04 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 Dep actually made 2,120,000 copies during the year?

The Document Creation Center (DCC) for Arlington Corporation provides photocopying and document services for three departments in the Min office. The following budget has been prepared for the year. Available capacity Budgeted usage: Software Development Training Management Cost equation 8,020,000 pages 1,620,000 pages 3,322,000 pages 2,118,000 pages $300,000+ $0.04 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 Dep actually made 2,120,000 copies during the year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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 9,400,000 pages Budgeted usage: Software Development 2,460,000 pages Training 3,600,000 pages Management 2,940,000 pages Cost equation $307,000 + $0.06 per page If DCC uses a dual-rate for allocating its costs based on usage, how much cost will be allocated to the Management Department? Multiple Choice $247,887. $276,687. $256,878. $130,829.
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