FIGURE 7-4 Copies Plus Print Operates a Copy Business at Two

question 130

Multiple Choice

FIGURE 7-4 Copies Plus Print operates a copy business at two different locations. Copies Plus Print 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 center on the basis of total copies made.
During the first month, the costs of the support department were expected to be $200,000. Of this amount, $60,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $128,000 and actual fixed costs of $72,000.
Normal and actual activity (copies made) are as follows:
Refer to Figure 7-4. For purposes of performance evaluation, fixed costs allocated to Copy Center 1 are

• A) $36,000.
• B) $37,600.
• C) $30,000.
• D) $32,800.

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