The Charmatz Corporation has a central copying facility. Its offices can supply up to copies per year. The copying facility has only two users, Department A and Department B The following data apply to the coming budget year:
Budgeted costs of Copy Support Department are:
Fixed costs per year $ peryear
Variable costs $ per copy
The operating departments have estimated their usage as follows:
Department A copies
Department B
copies
Actual usage for the year was:
Department A
copies
Department B
copies
Budgeted amounts are used to calculate the allocation rates. Actual usage is used to allocate costs under the singlerate method. Actual usage is used to allocate variable costs and budgeted usage is used to allocate fixed costs under the dualrate method. How will costs be allocated under the following conditions:
a singlerate costallocation method Round any intermediary calculations to the nearest cent.
Department A
Department E
b dualrate cost allocation method Round any intermediary calculations to the nearest cent.
