Use the Following Information for the Next 4 Questions

question 67

Multiple Choice

Use the following information for the next 4 questions.
Arthur Henderson, LLC is a CPA firm that has a Printing Department that makes copies for its two operating departments, Audit and Tax. The Printing Department's budget for 2005 showed budgeted fixed costs of $40,000 plus variable costs of 2 cents per copy. At the beginning of 2005, the Audit Department budgeted its usage at 80,000 copies, and the Tax Department budgeted its usage at 50,000 copies. However, actual usage was 70,000 copies and 60,000 copies made by the Audit and Tax Departments, respectively.
-Under the single-rate method, what is the total budgeted costs for the Audit Department?

• A) $1,600
• B) $1,400
• C) $26,215
• D) $22,938

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Definitions:

Operational Decisions

These are decisions aimed at managing the day-to-day operations of an organization to ensure efficient resource use and meeting customer demands.

Tailored Transportation

Customized transport solutions designed to meet specific needs of goods, optimizing efficiency and reducing costs.

Customer Needs

The requirements and desires of consumers that companies aim to meet with their products or services to achieve customer satisfaction.

Transportation Choice

The selection among various modes or methods of transport based on criteria such as cost, time, and environmental impact.