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

Multiple Choice

Azotea 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 $68 per order. The Order Fulfillment Department's fixed costs are budgeted at $239,700 for the year. The fixed costs of the Order Fulfillment Department are budgeted based on the peak-period orders. At the end of the year, actual Order Fulfillment Department variable costs totaled $249,390 and fixed costs totaled $251,140. The Consumer Division had a total of 1,840 orders and the Commercial Division had a total of 3,460 orders for the year.How much Order Fulfillment Department cost should be allocated to the Commercial Division at the end of the year?

A) $379,100
B) $387,798
C) $411,129
D) $401,900