The Document Creation Center (DCC) for Arlington Corp. provides photocopying and document services for three departments in the Minneapolis office. The following budget has been prepared for the year. Available capacity Budgeted usage: Software Development Training Management Cost equation 8,180,000 pages 1,508,000 pages 3,452,000 pages 2,580,000 pages $460,000+ $0.02 per page If DCC uses a dual-rate for allocating its costs, how much cost will be allocated to the Software Development Department, assuming the Software Development Department actually made 1,960,000 copies during the year?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...
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The Document Creation Center (DCC) for Arlington Corp. provides photocopying and document services for three
departments in the Minneapolis office. The following budget has been prepared for the year.
Available capacity
Budgeted usage:
Software Development
Training
Management
Cost equation
8,180,000 pages
1,508,000 pages
3,452,000 pages
2,580,000 pages
$460,000+ $0.02 per page
If DCC uses a dual-rate for allocating its costs, how much cost will be allocated to the Software Development
Department, assuming the Software Development Department actually made 1,960,000 copies during the year?
Transcribed Image Text:The Document Creation Center (DCC) for Arlington Corp. provides photocopying and document services for three departments in the Minneapolis office. The following budget has been prepared for the year. Available capacity Budgeted usage: Software Development Training Management Cost equation 8,180,000 pages 1,508,000 pages 3,452,000 pages 2,580,000 pages $460,000+ $0.02 per page If DCC uses a dual-rate for allocating its costs, how much cost will be allocated to the Software Development Department, assuming the Software Development Department actually made 1,960,000 copies during the year?
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