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

Multiple Choice

Parma 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. Parma College estimated it would produce a total of 30,000 copies per month. The Physics Department estimated it would produce 6,000 copies, but actually produced only 4,000 copies. If Parma College uses a predetermined rate per copy, then would be allocated to the Physics Department.

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