Seattle Corporation Has Two Operating Divisions - Inland Division and Coast

question 13

Essay

Seattle Corporation has two operating divisions - Inland Division and Coast Division. The company's Customer Service Department provides services to both divisions. The variable costs of the Customer Service Department are budgeted at $29 per order. The Customer Service Department's fixed costs are budgeted at $381,600 for the year. The fixed costs of the Customer Service Department are determined based on the peak period orders.
$$\begin{array} { l c c } & \text { Percentage of Peak } & \\& \text { Period Capacity Required } & \text { Budgeted Orders } \\\text { Inland Division } & 25 \% & 1,500 \\\text { Coast Division } & 75 \% & 5,700\end{array}$$
At the end of the year, actual Customer Service Department variable costs totaled $219,905 and fixed costs totaled $383,860. The Inland Division had a total of 1,520 orders and the Coast Division had a total of 5,690 orders for the year.
Required:
a. Prepare a report showing how much of the Customer Service Department's costs should be charged to each of the operating divisions at the end of the year.
b. How much of the actual Customer Service Department costs should not be charged to the operating divisions at the end of the year? Who should be held responsible for these uncharged costs?

Evaluate the effects of self-fulfilling prophecies in social interactions and outcomes.

Understand the concept of social cognition and how perceptions can be influenced by context and prior information.

Grasp the definitions and distinctions between schemas, metaphors, and priming in social cognition.

Recognize the effects of priming on behavior and decision-making processes.

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Definitions:

Minimum Cost

The lowest possible expenditure required to achieve a particular objective or to acquire goods or services.

Resources

Assets or inputs needed for individuals or organizations to function effectively.

Mediation

A form of alternative dispute resolution where a neutral third party helps disputing parties find a mutually acceptable solution.

Formal Hearing

A structured legal proceeding where evidence and arguments are presented to determine an outcome in a dispute.