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The Copy Department in the College of Business at State

question 75

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.
 Available capacity 6,000,000 pages  Budgeted usage:  Marketing 3,600,000 pages  Economics 1,800,00 pages  Cost equation $120,000+$0.025 per page \begin{array} { l c } \text { Available capacity } & 6,000,000 \text { pages } \\\text { Budgeted usage: } & \\\text { Marketing } & 3,600,000 \text { pages } \\\text { Economics } & 1,800,00 \text { pages } \\\text { Cost equation } & \$ 120,000 + \$ 0.025 \text { per page }\end{array}
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If the Copy Department uses a dual rate for allocating its costs based on usage, how much cost will be allocated to the Marketing Department?


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