The Copy Department in the College of Business at State

question 122

Multiple Choice

The Copy Department in the College of Business at State University provides photocopying services for both the Marketing and Economics Departments. The following budget has been prepared for the year.
$$\begin{array} { l c } \text { Available capacity } & 6,000,000 \text { pages } \\\text { Budgeted usage: } & \\\text { Marketing } & 3,600,000 \text { pages } \\\text { Economics } & 1,800,000 \text { pages } \\\text { Cost equation } & \$ 120,000 + \$ 0.02 \text { per page }\end{array}$$
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If the Copy Department uses a dual-rate for allocating its costs, how much cost will be allocated to the Marketing Department, assuming the Marketing Department actually made 3,800,000 copies during the year?

• A) $135,000.
• B) $150,000.
• C) $155,000.
• D) $175,000.

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Definitions:

Office of Management

A governmental bureau or department responsible for overseeing the administration and budgeting processes within the public sector, ensuring efficient operation and resources allocation.

Annual Budget

A financial document that projects income and expenditures for a specific year.

Bureau of the Budget

A former agency of the U.S. government responsible for creating and managing the federal budget, now known as the Office of Management and Budget (OMB).

Executive Orders

Directives issued by the President of the United States that have the force of law, often used to manage the operations of the federal government.