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

question 35

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.
$\begin{array}{lr}\text { Available capacity } & 8,000,000 \text { pages } \\\text { Budgeted usage: } & \\\text { Software Development } & 1,600,00 \text { pages } \\\text { Training } & 3,000,00 \text { pages } \\\text { Management } & 2,400,000 \text { pages } \\\text { Cost equation } & \$ 280,000+\$ 0.03 \text { per page }\end{array}$
-
If DCC uses a dual-rate for allocating its costs, how much cost will be allocated to the Training Department, assuming the Training Department actually made 3,250,000 copies during the year?

• A) $227,500.
• B) $211,250.
• C) $217,500.
• D) $223,017.

---

Definitions:

Milliunits

A measurement unit equal to one-thousandth of a unit, often used in medical dosing.

Pitocin

A synthetic form of oxytocin used to induce labor by stimulating uterine contractions or to reduce bleeding after childbirth.

Dopamine Infusion

The administration of dopamine via an intravenous line to treat certain conditions, such as low blood pressure or heart failure.

DE-style Equations

Differential Equation-style equations; mathematical equations that relate functions with their derivatives, often used in modeling.