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

question 32

Essay

Ocon 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 $28 per order.The Customer Service Department's fixed costs are budgeted at $372,300 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 $212,284 and fixed costs totaled $381,740.The Inland Division had a total of 1,710 orders and the Coast Division had a total of 5,560 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?

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Definitions:

Labor Force

The total number of people employed or actively seeking employment in a given economic area.

Right to Privacy

The human right to keep personal information confidential and protected from unauthorized disclosure, ensuring individuals' freedom from intrusion.

Privacy Legislation

Laws designed to protect individuals' personal information from unauthorized use or disclosure.

Administrative Laws

A branch of law that governs the activities of administrative agencies of government, including rule-making and enforcement.