Fleming Corporation has two operating divisions-the Northeast Division and the Southwest Division. The...

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Accounting

Fleming Corporation has two operating divisions-the Northeast Division and the Southwest Division. The company's IT Department services both divisions. The variable costs of the IT Department are budgeted at $36 per hour of service. The IT Department's fixed costs are budgeted at $399,600 for the year. The fixed costs of the IT Department are determined based on peak-period demand. (Baruch College Exam ID#930684)
\table[[,\table[[Percentage of Peak Period],[Capacity Required]],Budgeted Hours,Actual Hours],[Northeast Division,25%,1,600,2,700],[Southwest Division,75%,5,800,5,600]]
Q: At the end of the year, actual IT Department variable costs totaled $305,180 and fixed costs totaled $418,720. 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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