The costs are assigned to two cost pools

Reference no: EM13865746

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)	$80,500
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, 2,900,500 for sales and 3,168,000 for administration, calculate the copy department costs allocated to sales.

Reference no: EM13865746

Questions Cloud

Contribute the possibility that sexual harassment may have : Define conflict of interests in a business sense. How does Hurd actions and relationship with Jodie Fisher in the case create a conflict of interest? Did the conflict of interest and trust issue contribute the possibility that sexual harassment may h..

What is an inflation-indexed bond : 1.What is an inflation-indexed bond? What is a difference between the inflation-indexedbond and a conventional (nominal) bond? Which bond is riskier, the inflation-indexed bond or theconventional bond? Why? What are benefits of inflation-indexed bond..

Name the most commonly reported nonrecurring item : Name the most commonly reported nonrecurring item and explain where and how it is reported on the income statement.

Estimate what you think it will be before completing : estimate what you think it will be before completing the mathematical equation

The costs are assigned to two cost pools : 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 percen..

The document uncovered by the environmental working group : The document uncovered by the Environmental Working Group Report refers to the acceptable business risk in the Bhopal operation due to questions about the technology Is it ethical for a company to use business risk as a measure of whether to go ahea..

Techgear is an electronics company in the united states : Techgear is an electronics company in the United States. It uses the LIFO inventory method. You plan to compare its ratios to Eurotext, but you are concerned because Eurotext uses IFRS. What accounting policy difference is certain to exist between th..

Source transformation : Use Source Transformation to find V1 and V2?

What about the general public? : Were the shareholders of Apple entitled to receive information about the health of Jobs? What about the general public? Of what value is such information? How might the company benefit from the disclosure of such information and how might it suffer? ..

User Account

All Pages