3) Sauseda Corporation has two operating divisions-an Inland Division and a Coast Division. The company's Customer...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
3) 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 $384,000 for the year. The fixed costs of the Customer Service Department are determined based on the peak-period orders. (15 points) Percentage of Peak-period Budgeted Orders Capacity Required Inland 25% 1,940 Division Coast 75% 6,200 Division At the end of the year, actual Customer Service Department variable costs totaled $262,599 and fixed costs totaled $386,970. The Inland Division had a total of 1,975 orders and the Coast Division had a total of 6,155 orders for the year. Required: a. Prepare a report showing 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? Who should be held responsible for these uncharged costs? 3) 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 $384,000 for the year. The fixed costs of the Customer Service Department are determined based on the peak-period orders. (15 points) Percentage of Peak-period Budgeted Orders Capacity Required Inland 25% 1,940 Division Coast 75% 6,200 Division At the end of the year, actual Customer Service Department variable costs totaled $262,599 and fixed costs totaled $386,970. The Inland Division had a total of 1,975 orders and the Coast Division had a total of 6,155 orders for the year. Required: a. Prepare a report showing 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? Who should be held responsible for these uncharged costs?
Expert Answer:
Answer rating: 100% (QA)
Answer Variable Cost Allocation 1970 30 5735 x 30 Fixed Cost Allo... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
Suppose Dean has $500 and there are two companies he could invest X dollars in: Dog Gone Salon, which has a payoff of 2X with 50% probability and $0 with 50% probability and Pretty Kitty Grooming,...
-
Gage Corporation has two operating divisions in a semiautonomous organizational structure. Adams Division, located in the United States, produces a specialized electrical component that is an input...
-
Gage Corporation has two operating divisions in a semiautonomous organizational structure. Adams Division, located in the United States, produces a specialized electrical component that is an input...
-
SharpCo operates a large grocery store. On 1 October 2022, SharpCo purchased and installed a new security system at a cost of $200,000 (excluding GST) with an effective life of 10 years, SharpCo does...
-
In 2002, Congress held hearings to investigate the collapse of Houston-based energy giant Enron Corp., aiming to discover how to protect against similar disasters. The spectacular implosion of Enron...
-
1. Mention five key organizational characteristics that the Cll research team identified for organizations with effective quality management systems. provide brief discussion of each and how it...
-
The common methods for the computational solution of radiative transport equations are summarized briefly below: 1. The discrete ordinate method 2. The Monte-Carlo method 3. Hottel's zonal method 4....
-
Hartley Uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Hartley Uniforms reports the following cost data for the past year:...
-
A project has an initial cost of $35,000, expected net cash inflows of $14,000 per year for 11 years, and a cost of capital of 10%. What is the project's PI? (Hint: Begin by constructing a time...
-
Fun Silly Toys (FST) produces a number of space themed toys (e.g., astronaut action figures). One of the newer divisions at FST is the board game division, which currently produces and sells one...
-
Suppose we toss darts randomly at a square dartboard, whose bullseye is at the origin, and whose sides are 2 feet in length. Suppose also that there's a circle inscribed in the square dartboard. The...
-
Consider a closed economy described with a Keynesian cross. The consumption is C = 500 + .75 (Y T). Planned investment is 400, government spending is 300, and taxes are 300. 1. If Y is 2000, what is...
-
Provide a review of the survey/ assessment results from the assessment tool. Be sure to include three of the four elements from the Core 5 Personality survey: Openness, Conscientiousness,...
-
What is an alternative way to look at this, that is, to say that the right to print money is itself a source of revenue?
-
Man's hourly wage = 60 TL; Discrimination coefficient = 0.38. According to the data, calculate the woman's wage according to both the formula 'Becker's Wage Discrimination' and Neo-classical...
-
A golf club built a driving range on its property across from several residential properties located next to the golf course. Golfers using the driving range frequently hit golf balls into the...
-
You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given below: Asset Stock A Stock B Stock C Risk-free...
-
We all experience emotions, but some people disguise their true feelings better than others. Do you think this is a helpful or harmful thing to do? Under what conditions do you think it would be most...
-
Mercury, Inc., produces pagers at its plant in Texas. In recent years, the companys market share has been eroded by stiff competition from overseas. Price and product quality are the two key areas in...
-
What are the four steps in the planning and control cycle?
-
Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: The same raw material is used in all three...
-
Draw a timing diagram for a burst write operation that writes four locations.
-
Draw a UML sequence diagram for a burst read operation with wait states.
-
Draw a UML state diagram for a burst read operation with wait states. One state diagram is for the bus master and the other is for the device being read.
Study smarter with the SolutionInn App