Wollan Corporation has two operating divisions-an East Division and a West Division. The company's Logistics Department services both divisions. The variable costs of the Logistics Department are budgeted at $50 per shipment. The Logistics Department's fixed costs are budgeted at $349,000 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand. At the end of the year, actual Logistics Department variable costs totaled $377,476 and fixed costs totaled $364,000. The East Division had a total of 2,440 shipments and the West Division had a total of 5,020 shipments for the year.How much actual Logistics Department cost should not be allocated to the operating divisions at the end of the year?
A) $0
B) $19,476
C) $15,000
D) $4,476

Question

Wollan Corporation has two operating divisions-an East Division and a West Division. The company's Logistics Department services both divisions. The variable costs of the Logistics Department are budgeted at $50 per shipment. The Logistics Department's fixed costs are budgeted at $349,000 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand.  At the end of the year, actual Logistics Department variable costs totaled $377,476 and fixed costs totaled $364,000. The East Division had a total of 2,440 shipments and the West Division had a total of 5,020 shipments for the year.How much actual Logistics Department cost should not be allocated to the operating divisions at the end of the year?
A) $0 
B) $19,476 
C) $15,000 
D) $4,476

Quizplus · Accepted Answer

The Answer of Wollan Corporation has two operating divisions-an East Division and a West Division. The company's Logistics Department services both divisions. The variable costs of the Logistics Department are budgeted at $50 per shipment. The Logistics Department's fixed costs are budgeted at $349,000 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand.  At the end of the year, actual Logistics Department variable costs totaled $377,476 and fixed costs totaled $364,000. The East Division had a total of 2,440 shipments and the West Division had a total of 5,020 shipments for the year.How much actual Logistics Department cost should not be allocated to the operating divisions at the end of the year?
A) $0 
B) $19,476 
C) $15,000 
D) $4,476

Wollan Corporation Has Two Operating Divisions-An East Division and a West