Answer the following question(s)using the information below:
The Bonawitz Corporation has a central copying facility.The copying facility has only two users, the Marketing Department and the Operations Department.The following data apply to the coming budget year:
Budgeted amounts are used to calculate the allocation rates.Actual usage for the year by the Marketing Department was 40,000 copies and by the Operations Department was 180,000 copies.
-If a dual-rate cost allocation method is used, what amount of copying facility costs will be budgeted for the Operations Department?
A)$28,500
B)$28,200
C)$30,245
D)$29,945
E)$24,600

Question

Answer the following question(s)using the information below:
The Bonawitz Corporation has a central copying facility.The copying facility has only two users, the Marketing Department and the Operations Department.The following data apply to the coming budget year:
  Budgeted amounts are used to calculate the allocation rates.Actual usage for the year by the Marketing Department was 40,000 copies and by the Operations Department was 180,000 copies.
-If a dual-rate cost allocation method is used, what amount of copying facility costs will be budgeted for the Operations Department?
A)$28,500 
B)$28,200 
C)$30,245 
D)$29,945 
E)$24,600

Quizplus · Accepted Answer

The dual-rate cost allocation method separates fixed and variable costs. The budgeted amount for the Operations Department would be calculated based on the fixed costs allocated and the variable costs based on actual usage. The correct budgeted amount is $28,500.

Answer the Following Question(s)using the Information Below