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

question 335

Multiple Choice

Azotea 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 $68 per order. The Order Fulfillment Department's fixed costs are budgeted at $239,700 for the year. The fixed costs of the Order Fulfillment Department are budgeted based on the peak-period orders. At the end of the year, actual Order Fulfillment Department variable costs totaled $249,390 and fixed costs totaled $251,140. The Consumer Division had a total of 1,840 orders and the Commercial Division had a total of 3,460 orders for the year.How much Order Fulfillment Department cost should be allocated to the Commercial Division at the end of the year?

• A) $379,100
• B) $387,798
• C) $411,129
• D) $401,900

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Definitions:

Coping Responses

The strategies and behaviors that individuals use to manage the internal and external demands of situations that are appraised as stressful.

Daily Hassles

Minor everyday problems or annoyances that individuals face, which can accumulate and impact mental health and well-being.

Posttraumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a traumatic event, characterized by flashbacks, nightmares, and severe anxiety.

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Massive and sudden disasters or occurrences that cause significant changes to the Earth or societal structures.