(Appendix 12B)Sheinberg 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 $73 per order.The Order Fulfillment Department's fixed costs are budgeted at $425, 000 for the year.The fixed costs of the Order Fulfillment Department are budgeted based on the peak-period orders. At the end of the year, actual Order Fulfillment Department variable costs totaled $635, 485 and fixed costs totaled $443, 380.The Consumer Division had a total of 2, 340 orders and the Commercial Division had a total of 6, 190 orders for the year. How much actual Order Fulfillment Department cost should not be allocated to the operating divisions at the end of the year?
A)$31, 175
B)$18, 380
C)$12, 795
D)$0

Question

(Appendix 12B)Sheinberg 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 $73 per order.The Order Fulfillment Department's fixed costs are budgeted at $425, 000 for the year.The fixed costs of the Order Fulfillment Department are budgeted based on the peak-period orders.  At the end of the year, actual Order Fulfillment Department variable costs totaled $635, 485 and fixed costs totaled $443, 380.The Consumer Division had a total of 2, 340 orders and the Commercial Division had a total of 6, 190 orders for the year. How much actual Order Fulfillment Department cost should not be allocated to the operating divisions at the end of the year?
A)$31, 175 
B)$18, 380 
C)$12, 795 
D)$0

Quizplus · Accepted Answer

The Answer of (Appendix 12B)Sheinberg 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 $73 per order.The Order Fulfillment Department's fixed costs are budgeted at $425, 000 for the year.The fixed costs of the Order Fulfillment Department are budgeted based on the peak-period orders.  At the end of the year, actual Order Fulfillment Department variable costs totaled $635, 485 and fixed costs totaled $443, 380.The Consumer Division had a total of 2, 340 orders and the Commercial Division had a total of 6, 190 orders for the year. How much actual Order Fulfillment Department cost should not be allocated to the operating divisions at the end of the year?
A)$31, 175 
B)$18, 380 
C)$12, 795 
D)$0

(Appendix 12B)Sheinberg Corporation Has Two Operating Divisions-A Consumer Division and a Commercial