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 $19,410 $40,590 Actual Variable Costs (ID# 46818) Total Budgeted Costs $48,000 Operating Dept 1 10,000 deliveries 8,958 8,000 Operating Dept 2 5,000 deliveries 3,452 4,000 Peak period needs Actual deliveries Budgeted deliverles Q.) What amount of the TBBSBM764's delivery department's actual costs should not be allocated to the operating departments?

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 $19,410 $40,590 Actual Variable Costs (ID# 46818) Total Budgeted Costs $48,000 Operating Dept 1 10,000 deliveries 8,958 8,000 Operating Dept 2 5,000 deliveries 3,452 4,000 Peak period needs Actual deliveries Budgeted deliverles Q.) What amount of the TBBSBM764's delivery department's actual costs should not be allocated to the operating departments?

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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