The Document Creation Center (DCC)for Alegis Corp

question 11

Multiple Choice

The Document Creation Center (DCC) for Alegis Corp.provides photocopying and document services for three departments in the St.Paul office.The following budget has been prepared for the year. 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.

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Definitions:

Financial Advantage

The benefit attained from making certain business decisions or investments, often measured in terms of improved profitability or cost savings.

Processed Beyond

A term used to describe a stage in production or manufacturing where goods have progressed past a certain point in the production process.

Absorption Costing

An accounting method that includes all direct and indirect manufacturing costs in the cost of a product, including overhead.

Cost-plus Pricing

A pricing method where a fixed percentage is added to the total cost of producing a product or service to determine its selling price.