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

question 72

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 $56 per order. The Order Fulfillment Department's fixed costs are budgeted at $233,700 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 $237,390 and fixed costs totaled $239,140. The Consumer Division had a total of 1,240 orders and the Commercial Division had a total of 2,860 orders for the year.How much actual Order Fulfillment Department cost should not be allocated to the operating divisions at the end of the year?

• A) $7,790
• B) $5,440
• C) $13,230
• D) $0

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Definitions:

Generalised Anxiety Disorder

A psychological disorder characterized by excessive worry and anxiety about various topics, events, or activities, lasting for six months or more.

Panic Disorder

A psychiatric disorder characterized by recurrent, unexpected panic attacks and ongoing concerns about having more attacks.

Maladaptive

Behavior or thought processes that are counterproductive or interfere with everyday functioning and adaptation to life's demands and stressors.

Routine Activities

Regularly occurring behaviors or activities in one's day-to-day life that form patterns of behavior.