If the Copy Department uses a dual-rate for allocating its costs,how much cost will be allocated to the Economics Department,assuming the Economics Department actually made 1,500,000 copies during the year?
A)$77,500
B)$92,500
C)$132,500
D)$112,500

Question

Quizplus · Accepted Answer

The Copy Department uses a dual-rate for allocating its costs. The first 1,000,000 copies are charged at $0.05 per copy, and all copies over 1,000,000 are charged at $0.075 per copy. The Economics Department made 1,500,000 copies during the year, so it will be charged for 1,000,000 copies at $0.05 per copy and 500,000 copies at $0.075 per copy. The total cost allocated to the Economics Department will be $77,500.

If the Copy Department Uses a Dual-Rate for Allocating Its