Use the following information for the next 4 questions.
Arthur Henderson, LLC is a CPA firm that has a Printing Department that makes copies for its two operating departments, Audit and Tax. The Printing Department's budget for 2005 showed budgeted fixed costs of $40,000 plus variable costs of 2 cents per copy. At the beginning of 2005, the Audit Department budgeted its usage at 80,000 copies, and the Tax Department budgeted its usage at 50,000 copies. However, actual usage was 70,000 copies and 60,000 copies made by the Audit and Tax Departments, respectively.
-Under the dual-rate method, what amount of cost is allocated to the Tax Department if fixed costs are allocated based on budgeted usage and variable costs are allocated based on budgeted usage?
A) $17,667
B) $16,385
C) $19,661
D) None of the above
Correct Answer:
Verified
Q81: If product costs plus allocated support costs
Q96: Following are reasons to allocate support department
Q103: From the organization's perspective, relevant information when
Q105: Use the following information for the next
Q107: The allocation method that allocates fixed and
Q108: Use the following information for the next
Q108: A simple method used to allocate common
Q112: Use the following information for the next
Q113: Following are allocation bases that are often
Q114: A problem with charging other departments for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents