Seattle Corporation Has Two Operating Divisions - Inland Division and Coast

question 86

Essay

Seattle Corporation has two operating divisions - Inland Division and Coast Division.The company's Customer Service Department provides services to both divisions.The variable costs of the Customer Service Department are budgeted at $29 per order. $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Percentage of Peak Period } \\\text { Capacity Required }\end{array} & \begin{array} { c } \text { Budgeted } \\\text { Orders }\end{array} \\\hline \begin{array} { l } \text { Inland } \\\text { Division }\end{array} & 25 \% & 1,500 \\\hline \text { Coast } & 75 \% & 5,700 \\ \text { Division } & & \\\hline\end{array}$$ The Customer Service Department's fixed costs are budgeted at $381,600 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 $219,905 and fixed costs totaled $383,860.The Inland Division had a total of 1,520 orders and the Coast Division had a total of 5,690 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?

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Definitions:

Age Diversity

The inclusion of individuals of different ages within a workforce, considered beneficial for promoting varied perspectives and experiences.

Younger Workers

Individuals who are early in their careers and typically belong to the younger generations in the workforce, often characterized by different work values and expectations compared to older cohorts.

Older Workers

Employees who are approaching or have exceeded the traditional retirement age, contributing valuable experience and knowledge.

Standing Committees

Permanent committees established in a legislative body that focus on specific subject areas, like finance or agriculture, to consider bills and issues continuously.