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The Downstate Block Company has a trucking department that delivers crushed stone from the company's quarry to its two cement block production facilities-the West Plant and the East Plant. Budgeted costs for the trucking department are $399,000 per year in fixed costs and $.20 per ton variable cost. Last year, 78,000 tons of crushed stone were budgeted to be delivered to the West Plant and 118,000 tons of crushed stone to the East Plant. During the year, the trucking department actually delivered 87,000 tons of crushed stone to the West Plant and 105,000 tons to the East Plant. Its actual costs for the year were $78,000 variable and $414,000 fixed. The level of budgeted fixed costs is determined by peak-period requirements. The West Plant requires 40% of the peak-period capacity and the East Plant requires 60%. The company allocates fixed and variable costs separately. For performance evaluation purposes, how much of the actual trucking department cost should not be charged to the plants at the end of the year?
Asch Research
A series of studies conducted by Solomon Asch, exploring conformity and the extent to which individuals would change their judgment to align with the consensus of a group.
Social Pressures
Forces exerted by society or peer groups that influence an individual's behaviors, decisions, and feelings.
Conform
To match one's attitudes, beliefs, or behaviors to group norms or expectations.
Social Pressure
The influence exerted by a society or social group on individuals to conform to expected norms and behaviors.
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