Accounting Management assignment

The Oak 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 4700000 copies: Salaries (fixed)$94000 Employee benefits (fixed)11750 Depreciation of copy machines (fixed)9400 Utilities (fixed)4700 Paper (variable one cent per copy)47000 Toner (variable one cent per copy)47000 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 4470000 copies were made during the year 2350000 for sales and 2120000 for administration calculate the copy department costs allocated to sales and administration. 2.Richetti Metal Works received an offer from a big-box retail company to purchase 2640 metal outdoor tables for $192 each. Richetti Metal Works accountants determine that the following costs apply to the tables: Direct material $112 Direct labor 44 Manufacturing overhead 61 Total $217 Of the $61 of overhead $12 is variable and $49 relates to fixed costs. The $49 of fixed overhead is allocated as $0.98 per direct labor dollar. (A) What will be the real effect on profit if the is accepted? (B) The profit will decrease or increase? by what $? Requirements: 1 | .doc file ‘

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