Scuderi 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 $37 per order. The Customer Service Department's fixed costs are budgeted at $434,000 for the year. The fixed costs of the Customer Service Department are determined based on the peak period orders. Percentage of peak period capacity Budgeted required Inland Division 30% Coast 70% Division orders 2,150 5,880 At the end of the year, actual Customer Service Department variable costs totaled $303,958 and fixed costs totaled $436,740.The Inland Division had a total of 2,180 orders and the Coast Division had a total of 5,840 orders for the year. Calculate the amount of the Customer Service Department's costs that should be charged to each of the operating divisions at the end of the year.

Scuderi 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 $37 per order. The Customer Service Department's fixed costs are budgeted at $434,000 for the year. The fixed costs of the Customer Service Department are determined based on the peak period orders. Percentage of peak period capacity Budgeted required Inland Division 30% Coast 70% Division orders 2,150 5,880 At the end of the year, actual Customer Service Department variable costs totaled $303,958 and fixed costs totaled $436,740.The Inland Division had a total of 2,180 orders and the Coast Division had a total of 5,840 orders for the year. Calculate the amount of the Customer Service Department's costs that should be charged to each of the operating divisions at the end of the year.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 7E: Columbia Products Inc. has two divisions, Salem and Seaside. For the month ended March 31, Salem had...

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