A company has a service department which allocates its costs to two operating departments A and...

Transcribed Image Text:

A company has a service department which allocates its costs to two operating departments A and M. Variable costs of the service department are based on the number of cases produced and fixed costs are determined based on peak period demand requirements. For the most recent period: Service Department Total Variable Cost Total Fixed Cost Budget $400,000 Actual $ 417,741 $720,000 $ 732,990 Cases Produced % Peak Period Operating Departments Capacity Budget Actual Operating Department A 23,000 23,020 Required 60% Operating Department M 57,000 56,960 40% How much of the actual service department costs would not be charged to the operating departments for this period? $ A company has a service department which allocates its costs to two operating departments A and M. Variable costs of the service department are based on the number of cases produced and fixed costs are determined based on peak period demand requirements. For the most recent period: Service Department Total Variable Cost Total Fixed Cost Budget $400,000 Actual $ 417,741 $720,000 $ 732,990 Cases Produced % Peak Period Operating Departments Capacity Budget Actual Operating Department A 23,000 23,020 Required 60% Operating Department M 57,000 56,960 40% How much of the actual service department costs would not be charged to the operating departments for this period? $

Answer rating: 100% (QA)

To determine the amount of actual service department costs that would not be charged to the operatin... View the full answer