Wilson and Lewis,a large law firm,utilizes an internal centralized printing centre to serve its three departments: Individuals,Corporate,Trust.The costs of the printing department include fixed costs of $69,190 and variable costs of $0.04 per page.Total estimated print pages are estimated to be 330,000 pages.Individuals are estimated to use 130,000; Corporate will use 165,000 and 35,000 from the trust area.
-Refer to the figure.If the total pages printed were 340,000,which of the following statements is correct?

Question

Quizplus · Accepted Answer

The total number of pages printed is 340,000, which is 10,000 pages more than the estimated 330,000 pages. This means that the variable cost associated with the additional 10,000 pages would be $0.04 x 10,000 = $400. 
Therefore, the total cost incurred by the printing department would be the sum of fixed costs and the variable costs associated with the estimated number of pages plus the additional 10,000 pages, which is $69,190 + ($0.04 x 330,000) + $400 = $82,790. So, option B is correct. 
Option A is incorrect because the allocated cost to all departments is not given. Option C is incorrect because the extra amount charged is due to the variable cost associated with the additional pages, not because it is being charged as if it were fixed cost. Option D is incorrect because it does not consider the number of pages printed by the Corporate department.

Wilson and Lewis,a Large Law Firm,utilizes an Internal Centralized Printing