The costs are assigned to two cost pools one for fixed and

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Reference no: EM13588531

Apex 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 4,977,300 copies:

Salaries (fixed)		$105,600
Employee benefits (fixed)		12,200
Depreciation of copy machines (fixed)		12,400
Utilities (fixed)		5,500
Paper (variable, 1 cent per copy)		49,773
Toner (variable, 1 cent per copy)		49,773

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 4,777,300 copies were made during the year, 2,494,400 for sales and 2,282,900 for administration, calculate the copy department costs allocated to sales and administration.

Costs allocated to sales	$
Costs allocated to administration	$
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Reference no: EM13588531

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