(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?

Distinguish between deductive and inductive reasoning within the context of ideological arguments.

Acknowledge the social implications of ideological belief structures and how disagreement is perceived.

Describe how ideological premises are often taken on faith and their implications for argument construction.

Explain the function of supporting arguments in strengthening ideological claims and their evaluation criteria.

---

Definitions:

Economic Profit

Profit calculated by subtracting both explicit and implicit costs from total revenues, capturing the true profitability of a venture.

Market Price

The current value at which an asset or service can be bought or sold in a competitive marketplace.

Units

Basic measurements or quantities adopted as standards to express amounts, dimensions, or capacities for various elements or substances in specific contexts.

Marginal Cost

The price rise from the production of an additional unit of a product or service.