(Appendix 12B)Larubbio Corporation Has Two Operating Divisions-An Inland Division and a Coast

question 29

Essay

(Appendix 12B)Larubbio 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 $23 per order.The Customer Service Department's fixed costs are budgeted at $407, 100 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 $168, 560 and fixed costs totaled $426, 700.The Inland Division had a total of 2, 110 orders and the Coast Division had a total of 4, 770 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:

Blindsight

A phenomenon where people who are perceptually blind in a certain area of their visual field demonstrate some response to visual stimuli without consciously perceiving them.

Obsessive-Compulsive Disorder

A mental disorder characterized by unwanted, repeated thoughts (obsessions) and behaviors (compulsions) that the individual feels driven to perform.

Neural Basis of Consciousness

The study of how specific areas of the brain contribute to the experience of being conscious or aware.

Information Integration

The cognitive process by which different pieces of information are combined and synthesized into a coherent whole.