(CMA)The Printing Department Supplies Copy and Printing Support for Both

Multiple Choice

(CMA) The printing department supplies copy and printing support for both Departments A and B and has prepared its total budget using the following information for next year: Fixed costs $100,000
Available capacity 4,000,000 pages
Budgeted usage:
Department A 1,200,000 pages
Department B 2,400,000 pages
Variable cost $0.03 per page
Assume that the single rate method of cost allocation is used and the allocation base is budgeted usage. How much photocopying cost will be allocated to Department B using budgeted costs and usage?

A) $72,000
B) $122,000
C) $132,000
D) $138,667