Apex Company's Copy Department, which does almost all of the photocopying for the Sales Department and the
Question:
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 \(6,000,000\) copies:
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, 60 percent to sales and 40 percent to administration. The variable costs are assigned at a rate of 2 cents per copy.
Required
Assuming 5,800,000 copies were made during the year, \(3,000,000\) for Sales and \(2,800,000\) for Administration, calculate the Copy Department costs allocated to Sales and Administration.
Step by Step Answer:
