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

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter19: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 2CMA: Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing...

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