Strongsville College Recently Leased a Photocopy Machine for $2,000 Per

question 77

Multiple Choice

Strongsville College recently leased a photocopy machine for $2,000 per month plus $0.04 per copy.Additional variable operating costs were $0.02 per copy.Strongsville College estimated it would produce 30,000 copies per month.The Accounting Department estimated it would produce 6,000 copies, but actually produced only 4,000 copies.If fixed and variable cost pools are allocated separately, then the amount of fixed costs allocated to the Accounting Department should be _____.

• A)$240
• B)$360
• C)$400
• D)$200