A. This answer allocates the fixed costs at a rate calculated using the capacity, not the budgeting usage.

B. If the only allocation base is the budgeted usage, then Department B will receive 2/3 of the fixed costs since they use 2/3 of the printing services. This is $66,667. In addition to the fixed costs, though, they will also receive a charge of $.03 per page that they are budgeted to print. Since they were budgeted to print 2,400,000 pages, this variable charge is $72,000. So, in total Department B will be charged $138,667.

C. This answer allocates the fixed costs equally between the two departments.

D. This is the variable charge for Department B and does not include the fixed charge they will receive.