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

question 120

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,how much cost will be allocated to the Management Department,assuming the Management Department actually made 2,100,000 copies during the year?

• A) $147,000.
• B) $136,500.
• C) $159,000.
• D) $150,761.

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Definitions:

Significance Level

The threshold below which a test statistic must fall for the null hypothesis to be rejected, indicating statistical significance.

Coefficients

Numbers or parameters in a mathematical equation that multiply variables, often used to describe the relationship between variables in statistical models.

Probability Distribution

A math function tasked with computing the odds of different potential outcomes during an experiment.

Multiple Regression Model

A statistical technique that uses several explanatory variables to predict the outcome of a response variable.