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

question 38

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 Training Department,assuming the Training Department actually made 3,250,000 copies during the year?

• A) $227,500.
• B) $211,250.
• C) $217,500.
• D) $223,017.

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Definitions:

Excretion

The biological process by which organisms remove waste products from their bodies to maintain homeostasis.

Urine

Fluid that consists of water and soluble wastes; formed and excreted by the vertebrate kidneys.

Urination

The process of excreting urine from the urinary bladder through the urethra to the outside of the body, an essential function for eliminating waste.

Filtration

A process that separates solids from liquids or gases using a filter medium that only allows the fluid to pass through.