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costs and are allocated based on

costs and are allocated based on

FINANCIAL ACCOUNTING
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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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: $ < Prey 6 of 25 Next > MacBook Pro DD F1 F2 E3 F4 F5 F6 F7 F8 F9 F10 FIX @ # $ & * ( 2 3 5 7 8. 9. W E T D F G H. J K L.
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: $ < Prey 6 of 25 Next > MacBook Pro DD F1 F2 E3 F4 F5 F6 F7 F8 F9 F10 FIX @ # $ & * ( 2 3 5 7 8. 9. W E T D F G H. J K L.
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