Euclid College Recently Leased a Photocopy Machine for $1,500 Per

Multiple Choice

Euclid College recently leased a photocopy machine for $1,500 per month plus $0.04 per copy.Additional variable operating costs were $0.02 per copy.Euclid College estimated it would produce 30,000 copies per month.The Accounting Department estimated it would produce 6,000 copies, but actually produced only 4,000 copies.If Euclid College uses a predetermined rate per copy, then _____ would be allocated to the Accounting Department.

A) $540
B) $660
C) $440
D) $240