Cannata Corporation Has Two Operating Divisions--A North Division and a South

question 192

Essay

Cannata Corporation has two operating divisions--a North Division and a South Division. The company's Logistics Department services both divisions. The variable costs of the Logistics Department are budgeted at $32 per shipment. The Logistics Department's fixed costs are budgeted at $372,300 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand.
At the end of the year, actual Logistics Department variable costs totaled $335,000 and fixed costs totaled $382,850. The North Division had a total of 4,700 shipments and the South Division had a total of 5,300 shipments for the year.Required:a. Prepare a report showing how much of the Logistics Department's costs should be charged to each of the operating divisions at the end of the year.b. How much of the actual Logistics 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?

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Definitions:

Class Modules

Components in object-oriented programming that encapsulate data and functionalities for creating objects or instances.

Tables

Structures used in databases and documents for organizing data in rows and columns, allowing for efficient data management and presentation.

Execute

To run or carry out a command, program, or instruction within a computing environment.

Standard Module

A reusable set of code in software development that provides specific functionality and can be easily integrated into different parts of a system.