Xi Print Operates a Copy Business at Two Different Locations

question 137

Multiple Choice

Xi Print operates a copy business at two different locations. Xi Print has one support department that is responsible for cleaning, service, and maintenance of its copying equipment. The costs of the support department are allocated to each copy centre on the basis of total copies made.
During the first month, the costs of the support department were expected to be $200,000. Of this amount, $60,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $128,000 and actual fixed costs of $72,000.
Normal and actual activity (copies made) are as follows:

$\begin{array}{lll}&\text { Copy Centre } 1&\text { Copy Centre } 2\\\text { Normal activity (copies) } & 600,000 & 400,000 \\\text { Actual activity (copies) } & 500,000 & 440,000\end{array}$
-Refer to the figure.For purposes of performance evaluation,what are the fixed costs allocated to Copy Centre 2?

• A)$24,000
• B)$28,800
• C)$51,200
• D)$60,000

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Definitions:

Avolition

A lack of motivation or ability to initiate and persist in goal-directed behaviors, often seen in psychiatric disorders such as schizophrenia.

Tactile Hallucination

The false perception of physical touch or sensation on the skin without any physical cause.

Somatic Hallucination

False perceptions or sensations in the body that have no physical source, such as feeling insects crawling on the skin.

Auditory Hallucination

An experience involving hearing sounds, usually voices, that are not present in external reality.