Please show work. cuderi Corporation has two operating divisions-an Inland Divis
ID: 2712371 • Letter: P
Question
Please show work.
cuderi Corporation has two operating divisions-an Inland Division and a Coast Division. The company's Customer Service Department provides services to both divisions. The variable costs of the Customer Service Department are budgeted at $29 per order. The Customer Service Department's fixed costs are budgeted at $395,000 for the year. The fixed costs of the Customer Service Department are determined based on the peak period orders.
At the end of the year, actual Customer Service Department variable costs totaled $261,569 and fixed costs totaled $397,810. The Inland Division had a total of 2,330 orders and the Coast Division had a total of 6,360 orders for the year.
Required:
Prepare a report showing how much of the Customer Service Department's costs that should be charged to each of the operating divisions at the end of the year. (Omit the "$" sign in your response)
How much of the actual Customer Service Department costs should not be charged to the operating divisions at the end of the year? (Omit the "$" sign in your response)
Explanation / Answer
(a)
Inland Division
Coast Division
Amount to be charged
173479
473531
(b)
Inland Division
Coast Division
Amount not to be charged
3316.43
9052.57
Inland Division
Coast Division
Amount to be charged
173479
473531