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

question 26

Multiple Choice

Schabel Corporation has two operating divisions--a Consumer Division and a Commercial Division.The company's Customer Service Department provides services to both divisions.The variable costs of the Customer Service Department are budgeted at $72 per order.The Customer Service Department's fixed costs are budgeted at $695,400 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 $891,089 and fixed costs totaled $709,820.The Consumer Division had a total of 2,610 orders and the Commercial Division had a total of 9,580 orders for the year.For performance evaluation purposes,how much actual Customer Service Department cost should NOT be charged to the operating divisions at the end of the year?

• A) $13,409
• B) $0
• C) $14,420
• D) $27,829

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Definitions:

Electrons

Subatomic particles with a negative charge, found orbiting the nucleus of an atom, and crucial to chemical bonding and electricity.

Electrochemical Gradient

The combined difference in concentration and charge of ions across a membrane, driving the movement of ions through channels, critical for processes like muscle contraction and nerve transmission.

ATP

Adenosine triphosphate, a molecule that carries energy within cells for metabolism.

Chemiosmosis

The movement of ions across a selectively permeable membrane, down their electrochemical gradient, which is used in cellular respiration and photosynthesis to generate ATP.