FIGURE 7-4 Copies Plus Print Operates a Copy Business at Two Different

question 90

Multiple Choice

FIGURE 7-4
Copies Plus Print operates a copy business at two different locations. Copies Plus Print has one support department that is responsible for cleaning, service, and maintenance of its copying equipment. The costs of the support department are allocated to each copy center on the basis of total copies made.
During the first month, the costs of the support department were expected to be $200,000. Of this amount, $60,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $128,000 and actual fixed costs of $72,000.
Normal and actual activity (copies made) are as follows:

-Refer to Figure 7-4. For purposes of performance evaluation, fixed costs allocated to Copy Center 1 are

• A) $36,000.
• B) $37,600.
• C) $30,000.
• D) $32,800.

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Definitions:

Neo-Liberalism

An economic and political ideology and policy model that emphasizes the value of free-market competition, minimizing state intervention in the economy.

Sweeping Generalization

A broad and oversimplified conclusion or statement that does not account for exceptions or differences.

Stable

Describes a state of equilibrium or consistency within a system, characterized by the absence of significant change or fluctuation.

Socially Excluded

Individuals or groups who are marginalized from participating fully in economic, social, and cultural life of their community or society.