The Copy Department in the College of Business at State

question 85

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,how much cost will be allocated to the Marketing Department,assuming the Marketing Department actually made 3,800,000 copies during the year?

• A) $135,000.
• B) $150,000.
• C) $155,000.
• D) $175,000.

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Definitions:

Easement

A legal entitlement to access and use someone else's real estate without holding ownership.

Possessory Interest

A property interest in which an individual or entity has the right to possess and use property without owning it.

Land

denotes the earth's surface extending downward to the center of the earth and upward infinitely into space, including all things permanently attached naturally or by humans.

Freehold Estate

An interest in land that grants the holder full rights to use and control the land for an indefinite period.