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

question 151

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 Management Department?

• A) $168,000.
• B) $156,000.
• C) $178,286.
• D) $147,000.

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Definitions:

Form I-9

A U.S. Citizenship and Immigration Services form used by employers to verify an employee's identity and eligibility to work in the United States.

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