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:

Dictator Game

A behavioral economics experiment that tests how fairly individuals split money or resources between themselves and others without enforcement mechanisms.

Ultimatum Game

A game in economic experiments where one player proposes a division of a sum of money and the other player can accept or reject the proposal, testing concepts of fairness and decision-making.

Behavioral Economists

Economists who study the effects of psychological, social, cognitive, and emotional factors on the economic decisions of individuals and institutions.