Solution-How much of the actual service department costs

How much of the actual service department costs

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Reference no: EM132944582

Problem - A company has a service department which allocates its costs to two operating departments D and L. Variable costs of the service department are based on the number of cases produced and fixed costs are determined based on peak period demand requirements. For the most recent period:

Service Department	Budget	Actual
Total Variable Cost	$400,000	$416,626
Total Fixed Cost	$720,000	$732,960

Operating Departments	Cases Produced		% Peak Period Capacity Required
Operating Departments	Budget	Actual	% Peak Period Capacity Required
Operating Department D	23,000	23,020	35%
Operating Department L	57,000	56,960	65%

Required - How much of the actual service department costs would not be charged to the operating departments for this period?

Reference no: EM132944582

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How much of the actual service department costs

Reference no: EM132944582

Reference no: EM132944582

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