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.

---

Definitions:

Feasible

Capable of being done or achieved; possible to do easily or conveniently.

Barter

Trading goods and services directly without involving money as an intermediary.

Barter System

An ancient method of exchange where goods and services are directly traded for other goods and services without using money.

Good

A material item that can be touched, used, or consumed, which is produced to fulfill wants or needs.