Strongsville College Recently Leased a Photocopy Machine for $1,500 Per

Strongsville College recently leased a photocopy machine for $1,500 per month plus $0.04 per copy. Additional variable operating costs were $0.02 per copy. Strongsville College estimated it would produce a total of 30,000 copies per month. The Physics Department estimated it would produce 6,000 copies, but actually produced only 4,000 copies. If fixed and variable- cost pools are allocated separately, then is the amount of variable cost allocated to the Physics Department:

A) $240
B) $200
C) $300
D) $360

Correct Answer:

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