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Azotea Corporation has two operating divisions-a Consumer Division and a Commercial Division. The company's Order Fulfillment Department provides services to both divisions. The variable costs
Azotea Corporation has two operating divisions-a Consumer Division and a Commercial Division. The company's Order Fulfillment Department provides services to both divisions. The variable costs of the Order Fulfillment Department are budgeted at $70 per order. The Order Fulfillment Department's fixed costs are budgeted at $240,700 for the year. The fixed costs of the Order Fulfillment Department are budgeted based on the peak-period orders. Percentage of Peak- period Capacity Required 30% Budgeted Orders 1,900 3,600 Consumer Division Commercial Division 70% At the end of the year, actual Order Fulfillment Department variable costs totaled $251,390 and fixed costs totaled $253,140. The Consumer Division had a total of 1,940 orders and the Commercial Division had a total of 3,560 orders for the year. How much Order Fulfillment Department cost should be allocated to the Commercial Division at the end of the year? Multiple Choice $417,690
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