(CMA)The Printing Department Supplies Copy and Printing Support for Both

question 2

Multiple Choice

(CMA) The printing department supplies copy and printing support for both Departments A and B and has prepared its total budget using the following information for next year: Fixed costs $100,000
Available capacity 4,000,000 pages
Budgeted usage:
Department A 1,200,000 pages
Department B 2,400,000 pages
Variable cost $0.03 per page
Assume that the single rate method of cost allocation is used and the allocation base is budgeted usage. How much photocopying cost will be allocated to Department B using budgeted costs and usage?

• A)$72,000
• B)$122,000
• C)$132,000
• D)$138,667

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Definitions:

Distribution Manager

A professional responsible for overseeing the process of moving goods from production locations to points of sale and distribution.

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced with the inputs used to produce them, particularly labor hours.

Centralized Inventory

An approach in inventory management where all stock is kept in a single location, simplifying operations and potentially reducing costs.

Lead Times

The amount of time that passes from the start of a process until its completion.