The Document Creation Center (DCC)for Arlington Corp Uch Cost Will Be Allocated to the Software Development Department,assuming

question 46

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.If DCC uses a dual-rate for allocating its costs,how m $\begin{array}{|l|l|}\hline \text { Available capacity } & 8,000,000 \text { pages } \\\hline \text { Budgeted us age: } & \\\hline \text { Software Development } & 1,600,000 \text { pages } \\\hline \text { Training } & 3,000,000 \text { pages } \\\hline \text { Management } & 2,400,000 \text { pages } \\\hline \text { Cost equation } & \$ 280,000+\$ 0.03 \text { per page } \\\hline\end{array}$ uch cost will be allocated to the Software Development Department,assuming the Software Development Department actually made 1,160,000 copies during the year?

• A) $75,400.
• B) $98,800.
• C) $81,200.
• D) $84,312.

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Definitions:

Statement of Cash Flows

A document that explains how fluctuations in balance sheet accounts and income streams affect cash and cash equivalents, dividing the analysis among operating, investing, and financing operations.

Capital Cost Allowance (CCA)

CCA is the tax deduction allowed in Canada for the depreciation of property used in a business or profession.

Depreciation

The accounting process of allocating the cost of tangible assets over their useful lives, reflecting the decrease in value over time.

Net Capital Spending

The amount spent by a company for maintaining or increasing the scope of its assets, minus any sales of fixed assets during the same period.