Answer the following questions using the information below:
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

\begin{array}{lll}\text { for } 400,000 \text { to } 600,000 \text { copies: }\\\text { Fixed costs per year }&\$60,000\\\text { Variable costs }&3 \text { cents }(.03) \text { per copy }\\\text { Budgeted long-run usage in copies per year: }\\\text { Marketing Department } & 120,000 & \text { copies } \\\text { Operations Department } & 380,000 & \text { copies }\end{array}

Budgeted amounts are used to calculate the allocation rates.
Actual usage for the year by the Marketing Department was 80,000 copies and by the Operations Department was 360,000 copies.
-If a single-rate cost-allocation method is used,what amount of copying facility costs will be budgeted for the Marketing Department?
A) $18,000
B) $3,600
C) $14,400
D) $16,800

Benefits of the Single-Rate Method Include

Multiple Choice

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