Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

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

Financial Management Core Concepts

Authors: Raymond M Brooks

3rd edition

133866696, 978-0133866698

More Books

Students also viewed these Finance questions