The Document Creation Center (DCC)for Arlington Corp If DCC Uses a Dual Rate for Allocating Its Costs

question 113

Multiple Choice

The Document Creation Center (DCC) for Arlington Corp.provides photocopying and document services for three departments in the Minneapolis office.The following budget has been prepared for the year $\begin{array}{|l|l|}\hline \text { Available capacity } & 8,000,000 \text { pages } \\\hline \text { Budgeted us age: } & \\\hline \text { Software Development } & 1,600,000 \text { pages } \\\hline \text { Training } & 3,000,000 \text { pages } \\\hline \text { Management } & 2,400,000 \text { pages } \\\hline \text { Cost equation } & \$ 280,000+\$ 0.03 \text { per page } \\\hline\end{array}$ .If DCC uses a dual rate for allocating its costs based on usage,how much cost will be allocated to the Software Development Department?

• A) $98,000.
• B) $104,000.
• C) $112,000.
• D) $118,857.

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Definitions:

Deka-

A metric prefix denoting a factor of ten (10), used in units of measurement to indicate ten times the base unit.

10 Units

A quantifiable amount often used in medical dosing or measurement, where the unit of measure should be specified for clarity (e.g., insulin units, milliliters).

Ounce

A unit of weight in the avoirdupois system, equivalent to 28.3495 grams, commonly used in the United States and the United Kingdom.