Reference no: EM132561635

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 for 400,000 to 600,000 copies:

Fixed costs per year $64,000

Variable costs 5 cents (0.05) per copy

Budgeted long-run usage in copies per year:

Marketing Department 80,000 copies

Operations Department 320,000 copies

Budgeted amounts are used to calculate the allocation rates.

Question 1: Actual usage for the year by the Marketing Department was 120,000 copies and by the Operations Department was 380,000 copies. If a dual-rate cost-allocation method is used, what amount of copying facility costs will be budgeted for the Operations Department?

A) $67,200

B) $68,600

C) $64,140

D) $67,640