The Copy Department in the College of Business at State

question 60

Multiple Choice

The Copy Department in the College of Business at State University provides photocopying service for both the Marketing and Economics Department.The following budget has been prepared for the year. $$\begin{array} { | l | l | } \hline \text { Available capacity } & 6,000,000 \text { pages } \\\hline \text { Budgeted us age: } & \\\hline \text { Marketing } & 3,600,000 \text { pages } \\\hline \text { Economics } & 1,800,000 \text { pages } \\\hline \text { Cost equation } & \$ 120,000 + \$ 0.025 \text { per page } \\\hline\end{array}$$ If the Copy Department uses a dual rate for allocating its costs based on usage,how much cost will be allocated to the Economics Department?

• A) $85,000.
• B) $90,000.
• C) $105,000.
• D) $120,000.

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Definitions:

Actual Values

The real, measured values obtained from data collection as opposed to predicted or estimated figures.

Unusual Events

Occurrences that deviate significantly from the norm, which can impact operations, finances, or safety in various contexts.

Mean Absolute Deviation

A measure of variability that shows the average distance between each data point and the mean of the data set.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables.