Wilson and Lewis,a Large Law Firm,utilizes an Internal Centralized Printing

question 15

Multiple Choice

Wilson and Lewis,a large law firm,utilizes an internal centralized printing centre to serve its three departments: Individuals,Corporate,Trust.The costs of the printing department include fixed costs of $69,190 and variable costs of $0.04 per page.Total estimated print pages are estimated to be 330,000 pages.Individuals are estimated to use 130,000; Corporate will use 165,000 and 35,000 from the trust area.
-Refer to the figure.If the total pages printed were 340,000,which of the following statements is correct?

• A)The printing costs allocated to all departments would be $80,000.
• B)The printing department would expect to incur costs of $82,790.
• C)Any extra amount charged is due to the variable costs being charged as if they were fixed costs.
• D)The Corporate Department would incur costs of $50,000.

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