Use the Following Information for the Next 4 Questions

question 7

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 Tax Department if fixed costs are allocated based on budgeted usage and variable costs are allocated based on budgeted usage?

• A) $17,667
• B) $16,385
• C) $19,661
• D) None of the above

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Definitions:

Job Crafting

The process by which employees proactively modify their jobs in ways that can improve their work experience and performance.

Job Autonomy

Refers to the degree to which a position allows an employee to make decisions about scheduling, procedures, and the methodology used in completing work tasks.

Skill Variety

The degree to which a job requires a variety of different activities using different skills and talents.

Increasing Social

The process of enhancing social interaction, connection, and support networks among individuals or groups.