Levar 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 $34 per order. The Order Fulfillment Department's fixed costs are budgeted at $349,000 for the year. The fixed costs of the Order Fulfillment Department are determined based on the peak period orders. Percentage of Peak Period Capacity Required Budgeted Orders Consumer Division 40% 60% 1,540 5,490 Commercial Division At the end of the year, actual Order Fulfillment Department variable costs totaled $242,719 and fixed costs totaled $338,110. The Consumer Division had a total of 1,570 orders and the Commercial Division had a total of 5,445 orders for the year. For purposes f evaluation performance, how much Order Fulfillment Department cost should be charged to the Commercial Division at the end of the year? Multiple Choice O O O O $413,611 $403,188 $422,662 $394,530

Levar 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 $34 per order. The Order Fulfillment Department's fixed costs are budgeted at $349,000 for the year. The fixed costs of the Order Fulfillment Department are determined based on the peak period orders. Percentage of Peak Period Capacity Required Budgeted Orders Consumer Division 40% 60% 1,540 5,490 Commercial Division At the end of the year, actual Order Fulfillment Department variable costs totaled $242,719 and fixed costs totaled $338,110. The Consumer Division had a total of 1,570 orders and the Commercial Division had a total of 5,445 orders for the year. For purposes f evaluation performance, how much Order Fulfillment Department cost should be charged to the Commercial Division at the end of the year? Multiple Choice O O O O $413,611 $403,188 $422,662 $394,530

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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