Scuderi Corporation Has Two Operating Divisions-An Inland Division and a Coast

question 19

Essay

Scuderi 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 $29 per order.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?

---

Definitions:

Democratic Party

One of the two major contemporary political parties in the United States, historically associated with progressive policies and social liberalism.

Monroe Doctrine

A principle of US foreign policy, articulated by President James Monroe in 1823, which opposed European colonialism in the Americas and declared any intervention in the Western Hemisphere as a threat to US security.

Manifest Destiny

A 19th-century doctrine or belief that the expansion of the United States throughout the American continents was both justified and inevitable.