Answer (C) is correct . Based on budgeted usage, Department A should be allocated 1/3 [1,200,000 pages/ (1,200,000 pages + 2,400,000 pages)] of fixed costs, or $33,333 ($100,000*1/3). The variable costs are allocated at $0.03 per unit for 1,400,000 pages, or $42,000. The sum of the fixed and variable elements is $75,333.

Answer (A) is incorrect because The amount of $42,000 equals the variable costs allocated to Department A. Answer (B) is incorrect because The amount of $72,000 is the allocation to Department?B using a single rate.
Answer (D) is incorrect because The amount of $82,000 assumes fixed costs are allocated at a per-page rate based on actual usage ($100,000 ¡Â 3,500,000 pages = $.0286 per page). Answer (B) is incorrect because The amount of $72,000 is the allocation to Department?B using a single rate.
Answer (D) is incorrect because The amount of $82,000 assumes fixed costs are allocated at a per-page rate based on actual usage ($100,000 ¡Â 3,500,000 pages = $.0286 per page).