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

question 7

Multiple Choice

Auchmoody Corporation has two operating divisions-a Consumer Division and a Commercial Division.The company's Customer Service Department provides services to both divisions.The variable costs of the Customer Service Department are budgeted at $63 per order.The Customer Service Department's fixed costs are budgeted at $372,600 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 $444,405 and fixed costs totaled $382,900.The Consumer Division had a total of 2,030 orders and the Commercial Division had a total of 4,860 orders for the year.For performance evaluation purposes,how much actual Customer Service Department cost should NOT be charged to the operating divisions at the end of the year?

• A)$10,300
• B)$0
• C)$10,335
• D)$20,635

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Definitions:

Restrictive Clause

A clause that defines or limits the meaning of the noun it modifies and is essential to the meaning of a sentence.

Reference

This term describes the act of mentioning or alluding to something, or the relationship between expressions and entities in the world.

Restrictive

Limiting or controlling access, movement, or growth, often through rules, conditions, or physical barriers.

Nonrestrictive

Describes an element in a sentence, usually a clause or phrase, that provides additional information without limiting or defining the element it modifies.