Wilson, Inc -Refer to the Figure

question 5

Multiple Choice

Wilson, Inc., operates a copy business at two different locations. Wilson, Inc., 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 $400,000. Of this amount, $120,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $256,000 and actual fixed costs of $144,000.
Normal and actual activity (copies made) are as follows:
$\begin{array}{lll}&\text { Copy Centre } 1&\text { Copy Centre } 2\\\text { Normal activity (copies) } & 1,200,000 & 800,000 \\\text { Actual activity (copies) } & 1,000,000 & 880,000\end{array}$
-Refer to the figure.What support department costs are NOT allocated to the two copy centres?

• A)$8,000
• B)$16,800
• C)$19,680
• D)$44,000

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Definitions:

Long-term Debt

Debt obligations that are due for repayment in more than one year, often used by businesses to finance operations or acquisitions.

Financial Ratios

Relationships determined from a firm’s financial information and used for comparison purposes.

Prior Time Periods

Refers to specific durations or intervals in the past used for analysis or comparison.

Peer Group

A set of individuals or entities that share similar characteristics or interests, often used as a benchmark or point of comparison.