Answer the Following Questions Using the Information Below:
the Charmatz

question 17

Multiple Choice

Answer the following questions using the information below:
The Charmatz 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 costs of operating the copying facility
$\begin{array}{lll}\text { for } 400,000 \text { to } 600,000 \text { copies: }\\\text { Fixed costs per year }&\$60,000\\\text { Variable costs }&3 \text { cents }(.03) \text { per copy }\\\text { Budgeted long-run usage in copies per year: }\\\text { Marketing Department } & 120,000 & \text { copies } \\\text { Operations Department } & 380,000 & \text { copies }\end{array}$ Budgeted amounts are used to calculate the allocation rates.
Actual usage for the year by the Marketing Department was 80,000 copies and by the Operations Department was 360,000 copies.
-If a single-rate cost-allocation method is used,what amount of copying facility costs will be budgeted for the Marketing Department?

• A) $18,000
• B) $3,600
• C) $14,400
• D) $16,800

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Definitions:

Past Payment History

The record of an individual's or entity's past payments on all debts, used by lenders to gauge creditworthiness.

Initial Credit Purchase

The first acquisition of goods or services that allows payment to be delayed.

Sight Draft

A financial document that demands immediate payment upon presentation to the drawee, often used in international trade.

Time Draft

A written order to pay a specified amount of money at a certain time in the future, often used in international trade.