Question :
AC Consulting Company has purchased a new $15,000 copier. This overhead cost may be shared by the purchasing, information technology and accounting departments since those are the only departments which may be able to access the machine. The company has decided to assign the cost based on the number of copies made by each department. The copier is estimated to give 1 million copies over its life. Each department has estimated the number of copies which can be made in their department over the life of the copier.
Department
Copies
Purchasing
350,000
Accounting
200,000
Information Tech
400,000
How much overhead may be allocated each time a copy is made if cost allocations are computed to 4 significant digits?