Zen Company has a central copying facility. The copying facility has only two users, the...
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Accounting
Zen Company 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 $61479
Variable costs $0.08 per copy
Budgeted long-run usage in copies per year:
Marketing Department 102627 copies
Operations Department 408475 copies
Additional information provided include: actual usage of the facility for the year by the Marketing Department to be 80,000 copies and by the Operations Department to be 320,000 copies. The company uses the budgeted amounts to calculate the cost allocation rate and to allocate the copying facility costs to various departments. If a single-rate cost-allocation method is used, compute the amount of copying facility costs allocated to the Marketing Department, based on the company's approach to allocate facility costs?
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