Janner Corporation Has Two Operating Divisions-A Consumer Division and a Commercial

question 27

Multiple Choice

Janner 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 $79 per order.The Order Fulfillment Department's fixed costs are budgeted at $302,500 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 $446,016 and fixed costs totaled $320,930.The Consumer Division had a total of 1,540 orders and the Commercial Division had a total of 3,980 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)$526,170
• B)$546,235
• C)$532,527
• D)$552,979

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Definitions:

General Journal Entry

The initial recording of financial transactions in the general journal, indicating the accounts and amounts to be debited and credited.

Social Significance

The importance or meaning of something within society or a specific community, influencing norms, behaviors, and values.

Social Identity

A person's sense of who they are based on their group membership(s), including nationality, ethnicity, religious affiliation, and social class.

Sense of Stability

The feeling of consistency, security, and confidence in one's life or environment.