Sauseda Corporation Has Two Operating Divisions--An Inland Division and a Coast

question 132

Essay

Sauseda Corporation has two operating divisions--an Inland Division and a Coast Division. The company's Customer Service Department provides services to both divisions. The variable costs of the Customer Service Department are budgeted at $38 per order. The Customer Service Department's fixed costs are budgeted at $433,200 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 $303,240 and fixed costs totaled $450,280. The Inland Division had a total of 2,430 orders and the Coast Division had a total of 5,170 orders for the year.Required:a. Prepare a report showing how much of the Customer Service Department's costs should be charged to each of the operating divisions at the end of the year.b. How much of the actual Customer Service 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?

---

Definitions:

Nursing Recognized

The acknowledgment and validation of nursing as a critical and authoritative healthcare profession.

Functional Requirements

Specifications that describe what a system, project, or service should do, focusing on tasks and features.

Subsystem

A secondary or subordinate system that is part of a larger system, contributing to the overall function.

Subsystem

A self-contained system within a larger system, with its specific roles and functions contributing to the overall effectiveness.