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Wentz 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 $56 per order.The Order Fulfillment Department's fixed costs are budgeted at $190,800 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 $206,640 and fixed costs totaled $202,680.The Consumer Division had a total of 1,240 orders and the Commercial Division had a total of 2,360 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?
Wages
Payments made to employees in exchange for their labor, typically calculated on an hourly, daily, or piecework basis.
Price of Houses
The amount of money needed to buy a residential property, which can vary widely based on location, size, and other factors.
Demand for Product
The desire and willingness of consumers to purchase a specific good or service at a given price.
Output
The aggregate quantity of products or services generated by a business, sector, or economic system within a specified timeframe.
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