Triton Company's copy department, which does almost all of the photocopying for the sales department and the administrative department, budgets the following costs for the year, based on the expected activity of copies:

Salaries (fixed)…………………………………................…………$82,500

Employee benefits (fixed)………………………………..........….10,000

Depreciation of copy machines (fixed)……………………....10,000

Utilities (fixed)………………………………………………..................5,000

Paper (variable, 1 cent per copy)…………………………........50,000

Toner (variable, 1 cent per copy) ………………………….......50,000

The costs are assigned to two cost pools, one for fixed and one for variable costs. The costs are then assigned to the sales department and the administrative department. Fixed costs are assigned on a lump-sum basis, 40 percent to sales and 60 percent to administration. The variable costs are assigned at a rate of 2 cents per copy.

Assuming the following copies were made during the year, 2,910,250 for sales and 2,754,500 for administration, calculate the copy department costs allocated to sales.

Answer rating: 100% (QA)

Total Fixed Costs to be allocated 82250 10000 10000 50... View the full answer