Answer the Following Questions Using the Information Below:
the Charmatz

question 83

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 dual-rate cost-allocation method is used,what amount of copying facility costs will be budgeted for the Operations Department?

• A) $57,000
• B) $56,400
• C) $60,490
• D) $59,890

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Definitions:

Income

Refers to the amount of money received over a specific period of time by an individual or group from various sources like wages, investments, or business operations.

Aggregate Expenditure

the total amount of spending on goods and services in an economy during a specific period, including consumption, investment, government spending, and net exports.

Net Exports

The value of a country's total exports minus its total imports, representing its trade balance.

Imports

are goods and services brought into one country from another for sale, often indicating a country's demand for foreign products.