Homework Help is Here – Start Your Trial Now!
Business
Accounting
Levar Corporation has two operating divisions-a Consumer Division and a Commercial Division. The company's Order Fulfillment Department provides services to both divisions. The variable costs of the Order Fulfillment Department are budgeted at $34 per order. The Order Fulfillment Department's fixed costs are budgeted at $349,000 for the year. The fixed costs of the Order Fulfillment Department are determined based on the peak period orders. Percentage of Peak Period Capacity Required Budgeted Orders Consumer Division 40% 60% 1,540 5,490 Commercial Division At the end of the year, actual Order Fulfillment Department variable costs totaled $242,719 and fixed costs totaled $338,110. The Consumer Division had a total of 1,570 orders and the Commercial Division had a total of 5,445 orders for the year. For purposes f evaluation performance, how much Order Fulfillment Department cost should be charged to the Commercial Division at the end of the year? Multiple Choice O O O O $413,611 $403,188 $422,662 $394,530

Levar Corporation has two operating divisions-a Consumer Division and a Commercial Division. The company's Order Fulfillment Department provides services to both divisions. The variable costs of the Order Fulfillment Department are budgeted at $34 per order. The Order Fulfillment Department's fixed costs are budgeted at $349,000 for the year. The fixed costs of the Order Fulfillment Department are determined based on the peak period orders. Percentage of Peak Period Capacity Required Budgeted Orders Consumer Division 40% 60% 1,540 5,490 Commercial Division At the end of the year, actual Order Fulfillment Department variable costs totaled $242,719 and fixed costs totaled $338,110. The Consumer Division had a total of 1,570 orders and the Commercial Division had a total of 5,445 orders for the year. For purposes f evaluation performance, how much Order Fulfillment Department cost should be charged to the Commercial Division at the end of the year? Multiple Choice O O O O $413,611 $403,188 $422,662 $394,530

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%
Please Solve In 15mins
Levar Corporation has two operating divisions-a Consumer Division and a Commercial Division. The company's Order Fulfillment Department provides services to both divisions. The variable costs of the Order Fulfillment Department are budgeted at $34 per order. The Order Fulfillment Department's fixed costs are budgeted at $349,000 for the year. The fixed costs of the Order Fulfillment Department are determined based on the peak period orders. Percentage of Peak Period Capacity Required Budgeted Orders Consumer Division 40% 60% 1,540 5,490 Commercial Division At the end of the year, actual Order Fulfillment Department variable costs totaled $242,719 and fixed costs totaled $338,110. The Consumer Division had a total of 1,570 orders and the Commercial Division had a total of 5,445 orders for the year. For purposes f evaluation performance, how much Order Fulfillment Department cost should be charged to the Commercial Division at the end of the year? Multiple Choice O O O O $413,611 $403,188 $422,662 $394,530
Transcribed Image Text:Levar Corporation has two operating divisions-a Consumer Division and a Commercial Division. The company's Order Fulfillment Department provides services to both divisions. The variable costs of the Order Fulfillment Department are budgeted at $34 per order. The Order Fulfillment Department's fixed costs are budgeted at $349,000 for the year. The fixed costs of the Order Fulfillment Department are determined based on the peak period orders. Percentage of Peak Period Capacity Required Budgeted Orders Consumer Division 40% 60% 1,540 5,490 Commercial Division At the end of the year, actual Order Fulfillment Department variable costs totaled $242,719 and fixed costs totaled $338,110. The Consumer Division had a total of 1,570 orders and the Commercial Division had a total of 5,445 orders for the year. For purposes f evaluation performance, how much Order Fulfillment Department cost should be charged to the Commercial Division at the end of the year? Multiple Choice O O O O $413,611 $403,188 $422,662 $394,530
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Present Value
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS