Use the Following Information for the Next 4 Questions

question 55

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 dual-rate method, what amount of cost is allocated to the Audit Department if fixed costs are allocated based on budgeted usage and variable costs are allocated based on budgeted usage?

• A) $26,015
• B) $22,938
• C) $26,215
• D) None of the above

---

Definitions:

Hyperalimentation

A medical method of providing nutrients directly into the bloodstream, especially for patients who cannot eat or absorb nutrients through traditional means.

Infused

The process of introducing a substance into a body, usually via injection or through the bloodstream, such as with fluids or medication.

Allen Test

A medical procedure used to evaluate the arterial blood flow to the hand, ensuring patency before puncturing the radial artery, for example, for blood gas analysis.

Arterial Puncture

A medical procedure involving the insertion of a needle into an artery, typically to draw blood for diagnostic testing.