The Document Creation Center (DCC) for Arlington Corporation provides photocopying and document services for three departments in the Min office. The following budget has been prepared for the year. Available capacity Budgeted usage: Software Development Training Management Cost equation 8,020,000 pages 1,620,000 pages 3,322,000 pages 2,118,000 pages $300,000+ $0.04 per page. If DCC uses a dual-rate for allocating its costs, how much cost will be allocated to the Management Department, assuming the Management Dep actually made 2,120,000 copies during the year?

The Document Creation Center (DCC) for Arlington Corporation provides photocopying and document services for three departments in the Min office. The following budget has been prepared for the year. Available capacity Budgeted usage: Software Development Training Management Cost equation 8,020,000 pages 1,620,000 pages 3,322,000 pages 2,118,000 pages $300,000+ $0.04 per page. If DCC uses a dual-rate for allocating its costs, how much cost will be allocated to the Management Department, assuming the Management Dep actually made 2,120,000 copies during the year?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 38P: Friendly Bank is attempting to determine the cost behavior of its small business lending operations....

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