charged and uncharged costs managerial accounting 448671
Aug 29, 2021 | Uncategorized
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Boulay Corporation has two operating divisions a North Division and a South Division. The company%u2019s Logistics Department services both divisions. The variable costs of the Logistics Department are budgeted at $34.3 per shipment. The Logistics Department%u2019s fixed costs are budgeted at $174,000 for the year. The fixed costs of the Logistics Department are determined based on peak period demand.
|
|
Percentage of Peak
Period Capacity Required |
Budgeted Shipments |
| North Division |
|
39 |
% |
|
1,010 |
| South Division |
|
61 |
% |
|
2,300 |
|
|
At the end of the year, actual Logistics Department variable costs totaled $140,751 and fixed costs totaled $188,210. The North Division had a total of 2,010 shipments and the South Division had a total of 2,000 shipments for the year.
|
| Required: |
| a. |
Calculate the amount of Logistics Department%u2019s costs that should be charged to each of the operating divisions at the end of the year. (Omit the “$” sign in your response.)
|
|
North Division |
South Division |
Total |
| Total cost charged |
$ |
$ |
$ |
|
| b. |
How much of the actual Logistics Department costs should not be charged to the operating divisions at the end of the year? (Omit the “$” sign in your response.)
|
|
Variable |
Fixed |
| Total uncharged cost |
$ |
$ |
|
