Schabel Corporation Has Two Operating Divisions-A Consumer Division and a Commercial

question 334

Multiple Choice

Schabel Corporation has two operating divisions-a Consumer Division and a Commercial Division. The company's Customer Service Department provides services to both divisions. The variable costs of the Customer Service Department are budgeted at $72 per order. The Customer Service Department's fixed costs are budgeted at $695,400 for the year. The fixed costs of the Customer Service Department are determined based on the peak period orders. At the end of the year, actual Customer Service Department variable costs totaled $891,089 and fixed costs totaled $709,820. The Consumer Division had a total of 2,610 orders and the Commercial Division had a total of 9,580 orders for the year. For performance evaluation purposes, how much actual Customer Service Department cost should NOT be charged to the operating divisions at the end of the year?

• A) $13,409
• B) $0
• C) $14,420
• D) $27,829

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Definitions:

Fair Reward

Just or equitable compensation or acknowledgment provided to an individual based on their contributions or efforts.

Recognition Program

A formal scheme designed to acknowledge and reward the achievements, contributions, or performance of individuals or groups.

Supportive Human Resource Practice

HR practices aimed at supporting employees' personal and professional needs to improve job satisfaction and organizational commitment.

Standard Deviation

A numerical metric that calculates the degree of spread or variability in a data set.