Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Marx Company's copy department, which does almost all of the photocopying for the sales department and the administrative department, budgets the following costs for

image text in transcribed
The Marx 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 6,100,000 copies: $ 122,000 15,250 12.200 Salaries (fixed) Employee benefits (fixed) Depreciation of copy machines (fixed) Utilities (fixed) Paper (variable, one cent per copy) Toner (variable, one cent per copy) 6,100 61,000 61,000 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 5.730,000 copies were made during the year, 3,050,000 for sales and 2,680,000 for administration, calculate the copy department costs allocated to sales and administration Costs allocated to sales $ Costs allocated to administration $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accountability Ethics And Sustainability Of Organizations

Authors: Sandro Brunelli, Emiliano Di Carlo

3rd Edition

3030311929, 9783030311926

More Books

Students also viewed these Accounting questions

Question

How appropriate is it to conduct additional research?

Answered: 1 week ago

Question

What information remains to be obtained?

Answered: 1 week ago