Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Plaut Corporation has two operating divisionsa consumer division and a commercial division. The company's order fulfillment department provides services to both divisions. The variable costs

Plaut Corporation has two operating divisionsa 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 $55 per order. The order fulfillment department's fixed costs are budgeted at $403,200 for the year. The fixed costs of the order fulfillment department are determined based on the peak-period orders. At the end of the year, actual order fulfillment department variable costs totaled $409,528 and fixed costs totaled $422,330. The consumer division had a total of 1,730 orders and the commercial division had a total of 5,480 orders for the year. For purposes of evaluation performance, how much order fulfillment department cost should be charged to the commercial division at the end of the year? A. $607,854 B. $632,258 C. $606,895 D. $583,640

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

The Fraud Audit Responding To The Risk Of Fraud In Core Business Systems

Authors: Leonard W. Vona

1st Edition

0470647264, 978-0470647264

More Books

Students also viewed these Accounting questions

Question

=+Does performance degradation have an impact on company revenues?

Answered: 1 week ago

Question

=+2. Who is the audience?

Answered: 1 week ago