Answer the Following Question(s)using the Information Below

question 114

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 budgeted for the Operations Department?

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

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Definitions:

Average Inventory

The mean value of a company's inventory over a specific period, used to analyze inventory levels and manage stock efficiently.

Ending Inventory

The cumulative worth of all products a company holds in inventory at the conclusion of a financial period.

Beginning Inventory

The value of all inventory held by a company at the start of an accounting period, before any purchases or sales have occurred.

Accounts Receivable Turnover

A financial ratio measuring how many times a company collects its average accounts receivable balance within a certain period.