The Charmatz Corporation has a central copying facility. The copying facility has only two users,...
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Accounting
The Charmatz Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data apply to the coming budget year: Budgeted costs of operating the copying facility for 400,000 to 600,000 copies: Fixed costs per year $64,000 Variable costs 7 cents (0.07) per copy Budgeted long-run usage in copies per year. 90,000 copies Marketing Department 310,000 copies Operations Department Budgeted amounts are used to calculate the allocation rates. Actual usage for the year by the Marketing Department was 120,000 copies and by the Operations Department was 380,000 copies. If a dual-rate cost-allocation method is used, what amount of copying facility costs will be budgeted for the Operations Department? O A. $70,340 OB. $76,200 O C. $75,240 OD. $71,300
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