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The Document Creation Center (DCC) for Atlas Corp Required:
If DCC Uses a Dual-Rate for Allocating Its Costs

Question 137

Essay

The Document Creation Center (DCC) for Atlas Corp. provides document services for three departments in the St. Louis office. The following budget has been prepared for the month.
 Pages  Documents  Budgeted usage:  Software Developrnent 320,0002,500 Training 600,0004,500 Marnagernent 480,0005,500 Costs:  Fixed $63,000 Variable $35,000\begin{array} { l c r } & \text { Pages } & \text { Documents }\\\text { Budgeted usage: } \\\text { Software Developrnent } & 320,000 & 2,500 \\\text { Training } & 600,000 & 4,500\\\text { Marnagernent } &480,000 & 5,500 \\\text { Costs: } & \\\text { Fixed } &\$ 63,000 & \\\text { Variable } & \$ 35,000 & \\\end{array}
Required:
If DCC uses a dual-rate for allocating its costs, allocating fixed costs based on number of documents and variable costs based on number of pages, how much cost will be allocated to the three user departments? (Use three decimal places in your calculations.)

Correct Answer:

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Software Development: $20,600;...

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