The Copy Department in the College of Business at State University provides phot

Question

The Copy Department in the College of Business at State University provides photocopying service for both the Marketing and Economics Department. The following budget has been prepared for the year.

  

  

If the Copy Department uses a dual rate for allocating its costs based on usage, how much cost will be allocated to the Marketing Department?

The Copy Department in the College of Business at State University provides photocopying service for both the Marketing and Economics Department. The following budget has been prepared for the year.

Explanation / Answer

Ans

Marketing Department Per Page cost No of Pages Amount Variable Cost 0.025 44,00,000.00     1,10,000.00 Amount Allocation ratio Fixed Cost 132000 4400000:2200000        88,000.00 Total Cost     1,98,000.00

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