Sauseda 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 $31 per order. The Customer Service Department's fixed costs are budgeted at $455,000 for the year. The fixed costs of the Customer Service Department are determined based on the peak-period orders.

Sauseda 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 $31 per order. The Customer Service Department's fixed costs are budgeted at $455,000 for the year. The fixed costs of the Customer Service Department are determined based on the peak-period orders.

	Percentage of Peak-period Capacity Required			Budgeted Orders
Inland Division		40	%		2,000
Coast Division		60	%		6,360

At the end of the year, actual Customer Service Department variable costs totaled $264,378 and fixed costs totaled $457,420. The Inland Division had a total of 2,025 orders and the Coast Division had a total of 6,315 orders for the year.

Required:

a. How much of the Customer Service Department's costs should be charged to each of the operating divisions at the end of the year?

b. How much of the actual Customer Service Department costs should not be charged to the operating divisions at the end of the year?

Complete this question by entering your answers in the tabs below.

• Required A
• Required B

How much of the actual Customer Service Department costs should not be charged to the operating divisions at the end of the year?

	Variable Cost	Fixed Cost
Amount not to be charged

At the end of the year, actual Customer Service Department variable costs totaled $264,378 and fixed costs totaled $457,420. The Inland Division had a total of 2,025 orders and the Coast Division had a total of 6,315 orders for the year.