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| The Photocopying Department provides photocopy services for both Departments A and B and has prepared its total budget using the following information for next year. Fixed costs $100,000 Available capacity 4,000,000 pages Budgeted usage: Department A 1,200,000 pages Department B 2,400,000 pages Variable cost $0.03 per page Assume that the dual-rate cost allocation method is used and the allocation basis is budgeted usage for fixed costs and actual usage for variable costs. How much cost would be allocated to Department A during the year if actual usage for Department A is 1,400,000 pages and actual usage for Department B is 2,100,000 pages? A. $75,333 B. $82,000 C. $72,000 D. $42,000 |