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(Appendix 12B)Sheinberg Corporation Has Two Operating Divisions-A Consumer Division and a Commercial

Question 24

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(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. (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 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

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