Triton Company\'s copy department, which does almost all of the photocopying for

Question

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) $84,500

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, 2,635,250 for sales and 3,194,250 for administration, calculate the copy department costs allocated to sales. Please explain where the Sales Copies number of 2651250 was figured out in the below calculations??? There is no additional information and the bottom answer is correct. Thank you

Here is the correct calculation but where is the

The formular is Add Fixed Costs to Total Fixed Costs

Salary + Benefits + Depreciation + Utilities = Total Fixed Costs

84,500 + 10,000 + 10,000 + 5,000 = 109,500

Total Fixed Costs x 40% = 109,500 * .4 = 43,800

Sales Copies X .02 = Sales Variable Costs

2651250 * .02 = 53025

Sales Fixed Costs + Sales Variable Costs = Copy Department Costs Allocated To Sales

43,800 + 53025 = 96, 825 Correct Answer   

Explanation / Answer

Might be possible the number of copies for sales is wrongly printed ..The actual number of copies for sales is 2651250

so variable cost = 2651250*.02 = 53025

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