Zach Corporation has a central copying facility. The copying facility has only two users, the...
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Accounting
Zach 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 300,000 to 700,000 copies:
Fixed costs per year $62,284
Variable costs $0.05 per copy
Budgeted long-run usage in copies per year:
Marketing Department 102,697 copies
Operations Department 406,449 copies
Budgeted amounts are used to calculate the allocation rate, and to allocate costs.
Actual usage for the year by the Marketing Department was 80,000 copies and by the Operations Department was 320,000 copies. If a single-rate cost-allocation method is used, what amount of copying facility costs will be budgeted for the Marketing Department?
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