6 TBBSBM764 Corporation's delivery department provides service for two operating departments of the company.Variable costs of the TBBSBM764's delivery department are allocated based on the number of deliveries made to each department ina given period.TBBSBM764's delivery department's fixed costs are budgeted to be 25% of total costs and are allocated based on the peak periodneeds of each operating department. Data for last year are given below:Delivery Department:Actual Fixed CostsActual Variable Costs(ID#44485)Total Budgeted Costs$19,030$41,430$48,000Peak period needsActual deliveriesBudgeted deliveriesOperating Dept 110,000 deliveries9,0068,000Operating Dept 25,000 deliveries3,5134,000Q: What amount of the TBBSBM764's delivery department's actual costs should not be allocated to the eperating departments?A: $< Prey6 of 25Next >MacBook ProDDF1F2E3F4F5F6F7F8F9F10FIX@#$&*(23578.9.WETDFGH.JKL.

Fixed costs allocated = 25% * Total costs 25% * $48000 = $12000

Answered: costs and are allocated based on

Business

Accounting

costs and are allocated based on

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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TBBSBM764 Corporation's delivery department provides service for two operating departments of the company. Variable costs of the TBBSBM764's delivery department are allocated based on the number of deliveries made to each department in a given period. TBBSBM764's delivery department's fixed costs are budgeted to be 25% of total costs and are allocated based on the peak period needs of each operating department. Data for last year are given below: Delivery Department: Actual Fixed Costs Actual Variable Costs (ID#346818) Total Budgeted Costs $19,410 $40,590 $48,000 Peak period needs Actual deliveries Budgeted deliveries Operating Dept 1 10,000 deliveries 8,958 8,000 Operating Dept 2 5,000 deliveries 3,452 4,000 Q.) What amount of the TBBSBM764's delivery department's actual costs should not be allocated to the operating departments? A.) $ Prev 1 of 25 Next > MacBook Air
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