The Document Creation Center (DCC) for Arlington Corp -
If DCC Uses a Dual-Rate for Allocating Its Costs

question 158

Multiple Choice

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.
$\begin{array}{lr}\text { Available capacity } & 8,000,000 \text { pages } \\\text { Budgeted usage: } & \\\text { Software Development } & 1,600,00 \text { pages } \\\text { Training } & 3,000,00 \text { pages } \\\text { Management } & 2,400,000 \text { pages } \\\text { Cost equation } & \$ 280,000+\$ 0.03 \text { per page }\end{array}$
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If DCC uses a dual-rate for allocating its costs based on usage, how much cost will be allocated to the Training Department?

• A) $183,750.
• B) $210,000.
• C) $195,000.
• D) $222,857.

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Definitions:

The Internet

A global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices.

Information

Data that is processed, organized, and contextualized to have meaning and value.

Printing Press

A mechanical device for applying pressure to an inked surface resting upon a print medium, revolutionizing the dissemination of knowledge by making books less expensive and more widely available.

Executed Prisoners

Individuals who have been put to death as a result of being convicted of certain crimes, under the authority of a legal system.