Answer the Following Question(s)using the Information Below

question 15

Multiple Choice

Answer the following question(s) using the information below:
The Bonawitz Corporation has a central copying facility.The copying facility has only two users, the Marketing Department and the Operations Department.The following data apply to the coming budget year:
Budgeted amounts are used to calculate the allocation rates.Actual usage for the year by the Marketing Department was 40,000 copies and by the Operations Department was 180,000 copies.
-If a dual-rate cost allocation method is used, what amount of copying facility costs will be allocated to the Operations Department? Assume budgeted usage is used to allocate fixed copying costs and actual usage is used to allocate variable copying costs.

• A)$30,245
• B)$29,945
• C)$28,500
• D)$28,200
• E)$24,600

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Definitions:

Selling and Administrative Expense Budget

A financial plan outlining the projected expenses for selling activities and general administrative functions of a business.

Variable Expense

Costs that vary directly with the level of output or sales, including materials and labor costs.

Fixed Selling and Administrative Expense

Overhead costs not directly tied to production, including salaries of sales personnel and office rent, that remain constant regardless of sales volume.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, focusing on a company's liquidity and ability to meet short-term obligations.