Fleming Corporation has two operating divisionsthe Northeast Division and the Southwest Division. The company's IT Department services both divisions. The variable costs of the IT Department are budgeted at $ per hour of service. The IT Department's fixed costs are budgeted at $ for the year. The fixed costs of the IT Department are determined based on peakperiod demand. Baruch College Exam ID#
tabletablePercentage of Peak PeriodCapacity RequiredBudgeted Hours,Actual HoursNortheast Division,Southwest Division,
Q: At the end of the year, actual IT Department variable costs totaled $ and fixed costs totaled $ For performance evaluation purposes, how much actual IT Department cost should NOT be charged to the operating divisions at the end of
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