The Printing Department Supplies Copy and Printing Support for Both

question 48

Multiple Choice

The printing department supplies copy and printing support for both Departments A and B and has prepared its total budget using the following information for next year: $$\begin{array} { l c } \text { Fixed costs } & \$ 100,000 \\\text { Available capacity } & 4,000,000 \text { pages } \\\text { Budgeted usage: } & \\\quad \text { Department A } & 1,200,000 \text { pages } \\\quad \text { Department B } & 2,400,000 \text { pages } \\\text { Variable cost } & \$ 0.03 \text { perpage }\end{array}$$ Assume that the single rate method of cost allocation is used and the allocation base is budgeted usage. How much photocopying cost will be allocated to Department B using budgeted costs and usage?

• A) $72,000
• B) $122,000
• C) $132,000
• D) $138,667

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Definitions:

Discomfort

A feeling of physical or mental unease, such as slight pain or distress.

Inefficiency

The lack of ability to achieve the desired output with minimum input or to utilize resources in the best possible manner.

Subjective Experience

An individual’s personal perception, feelings, or experience of the world around them, emphasizing the importance of personal interpretation of events.

Dream Theory

A set of propositions and ideas proposed to explain the meaning, origin, and purpose of dreams in the human sleep cycle.