The Document Creation Center (DCC) for Arlington Corp. provides photocopying and document services for three departments in the Minneapolis office. The following budget has been prepared for the year. Available capacity8,030,000pagesBudgeted usage: Software Development1,630,000pagesTraining3,333,000pagesManagement2,127,000pagesCost equation$310,000 + $0.02per page If DCC uses a dual-rate for allocating its costs, how much cost will be allocated to the Management Department, assuming the Management Department actually made 2,130,000 copies during the year? Multiple Choice $84,670. $86,790. $86,275. $135,600.

Cost allocation is a process of allocating indirect or supporting cost of one department to other…

Answered: The Document Creation Center (DCC) for…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 1BE: At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and...

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The Document Creation Center (DCC) for Arlington Corp. provides photocopying and document services for three departments in the Minneapolis office. The following budget has been prepared for the year.


Available capacity	8,030,000	pages
Budgeted usage:
Software Development	1,630,000	pages
Training	3,333,000	pages
Management	2,127,000	pages
Cost equation	$310,000 + $0.02	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 Department actually made 2,130,000 copies during the year?

Multiple Choice

$84,670.
$86,790.
$86,275.
$135,600.

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