(Appendix 12B)Plaut Corporation Has Two Operating Divisions-A Consumer Division and a Commercial

question 32

Multiple Choice

(Appendix 12B) Plaut Corporation has two operating divisions-a Consumer Division and a Commercial Division.The company's Order Fulfillment Department provides services to both divisions.The variable costs of the Order Fulfillment Department are budgeted at $55 per order.The Order Fulfillment Department's fixed costs are budgeted at $403, 200 for the year.The fixed costs of the Order Fulfillment Department are determined based on the peak-period orders. At the end of the year, actual Order Fulfillment Department variable costs totaled $409, 528 and fixed costs totaled $422, 330.The Consumer Division had a total of 1, 730 orders and the Commercial Division had a total of 5, 480 orders for the year.For purposes of evaluation performance, how much Order Fulfillment Department cost should be charged to the Commercial Division at the end of the year?

• A)$607, 854
• B)$632, 258
• C)$583, 640
• D)$606, 895

---

Definitions:

Intake-Output Measurement

Monitoring and recording the amount of fluids a patient consumes and excretes over a particular period, important in medical care for maintaining fluid balance.

Consumed

The act of using up a resource or being ingested as food or drink.

Coughs

An action the body takes to clear the airways of irritants and secretions.

Stress Incontinence

The involuntary loss of urine during physical activity that puts pressure on the bladder, such as coughing, sneezing, or exercising.