(Appendix 12B)Sheinberg Corporation Has Two Operating Divisions-A Consumer Division and a Commercial
Multiple Choice
(Appendix 12B) Sheinberg 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 $73 per order.The Order Fulfillment Department's fixed costs are budgeted at $425, 000 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 $635, 485 and fixed costs totaled $443, 380.The Consumer Division had a total of 2, 340 orders and the Commercial Division had a total of 6, 190 orders for the year. How much actual Order Fulfillment Department cost should not be allocated to the operating divisions at the end of the year?
A) $31, 175
B) $18, 380
C) $12, 795
D) $0
Correct Answer:

Verified
Correct Answer:
Verified
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