The Charmatz Corporation e and the has a central copying facility. The copying f
ID: 2391621 • Letter: T
Question
The Charmatz Corporation e and the has a central copying facility. The copying facility has only two users, the ations Department. The following data apply to the coming budget 12) De Rudgeted costs of operating the copying facility for 300,000 to 500,000 copies: Fixed costs per year Variable costs Budgeted long-run usage in copies per year $61,000 6 cents (0.06) per copy Marketing Department 100,000 copies 400,000 copies Operations Department Budgeted amounts are used to calculate the allocation rates. Actual usage for the year by the Marketing Department was 80,000 copies and by the Operations was 320,000 copies. If a single-rate cost-allocation method is used, what amount of copying facility costs will be budgeted for the Marketing Department? (Round any intermediary calculat the nearest cent.) A) $18,200 B) $6000 C) $12,200 D) $21,250 ions to Page 4 of 6Explanation / Answer
12) Solution: 18,200
Working:
Variable cost= 500,000 * 0.06 = 30,000; Ficed cost = 61,000
Total cost = 30,000 + 61,000 = 91,000
$91,000/500,000 = 0.18 per copy
When marketing department plans makes 80,000 copies, the allocated budgeted = 100,000 * $0.18 = $18,200.
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{(100,000 / (100,000 + 400,000)) * $61,000} + (100,000 * $0.06) = $18,200
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13) Solution: 65,100
Working:
{(310,000) / (90,000 + 310,000) * $64,000} + (310,000 * $0.05) = $65,100
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14) Solution: joint
Explanation: A joint cost refers to the process of production that yields multiple products simultaneously
15) Solution: It is the point in a joint production process when two or more products become separately identifiable
Explanation: splitoff point in joint costing refers to the point in a process of joint production wherein the two or more products become separately identifiable