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

question 102

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 2 are

• A) $28,800.
• B) $60,000.
• C) $51,200.
• D) $24,000.

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Definitions:

Rule of Reason

A legal doctrine used to determine if a business practice is unlawful as being anti-competitive, considering the practice's overall circumstances and its actual impact on competition.

Supreme Court

The highest federal court in the United States, serving as the ultimate arbiter of legal disputes.

Civil War

A war between groups within the same country or state, often involving a struggle for power, territory, or ideological dominance.

Era of the Trust

A historical period in the late 19th and early 20th century marked by the rise and dominance of large business monopolies and trusts in the United States.