costs and are allocated based on
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:TBBSBM764 Corporation's delivery department provides service for two operating departments of the company.
Variable costs of the TBBSBM764's delivery department are allocated based on the number of deliveries made to each department in
a given period.
TBBSBM764's delivery department's fixed costs are budgeted to be 25% of total costs and are allocated based on the peak period
needs of each operating department. Data for last year are given below:
Delivery Department:
Actual Fixed Costs
Actual Variable Costs
(ID#44485)
Total Budgeted Costs
$19,030
$41,430
$48,000
Peak period needs
Actual deliveries
Budgeted deliveries
Operating Dept 1
10,000 deliveries
9,006
8,000
Operating Dept 2
5,000 deliveries
3,513
4,000
Q: What amount of the TBBSBM764's delivery department's actual costs should not be allocated to the eperating departments?
A: $
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