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) $86,500 Employee benefits (fixed) 10,000 Depreciation of copy 10,000 machines (fixed) Utilities (fixed) 5,000 Paper (variable, 1 cent per 50,000 copy) Toner (variable, 1 cent per 50,000 copy) 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, 2,958,500 for sales and 2,714,250 for administration, calculate the copy department costs allocated to sales. Bound to two decimal places.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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)
$86,500
Employee benefits (fixed)
10,000
Depreciation of copy
10,000
machines (fixed)
Utilities (fixed)
5,000
Paper (variable, 1 cent per
50,000
copy)
Toner (variable, 1 cent per
50,000
copy)
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, 2,958,500 for sales and
2,714,250 for administration, calculate the copy department costs allocated to sales.
Round to two decimal places.
Transcribed Image Text: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) $86,500 Employee benefits (fixed) 10,000 Depreciation of copy 10,000 machines (fixed) Utilities (fixed) 5,000 Paper (variable, 1 cent per 50,000 copy) Toner (variable, 1 cent per 50,000 copy) 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, 2,958,500 for sales and 2,714,250 for administration, calculate the copy department costs allocated to sales. Round to two decimal places.
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