Solved

(Appendix 12B)Soland Corporation Has Two Operating Divisions-An Atlantic Division and a Pacific

Question 4

Multiple Choice

(Appendix 12B) Soland Corporation has two operating divisions-an Atlantic Division and a Pacific Division.The company's Logistics Department services both divisions.The variable costs of the Logistics Department are budgeted at $46 per shipment.The Logistics Department's fixed costs are budgeted at $253, 700 for the year.The fixed costs of the Logistics Department are determined based on peak-period demand. (Appendix 12B) Soland Corporation has two operating divisions-an Atlantic Division and a Pacific Division.The company's Logistics Department services both divisions.The variable costs of the Logistics Department are budgeted at $46 per shipment.The Logistics Department's fixed costs are budgeted at $253, 700 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 $342, 000 and fixed costs totaled $273, 230.The Atlantic Division had a total of 4, 400 shipments and the Pacific Division had a total of 2, 800 shipments for the year.For performance evaluation purposes, how much actual Logistics Department cost should NOT be charged to the operating divisions at the end of the year? A) $30, 330 B) $0 C) $19, 530 D) $10, 800 At the end of the year, actual Logistics Department variable costs totaled $342, 000 and fixed costs totaled $273, 230.The Atlantic Division had a total of 4, 400 shipments and the Pacific Division had a total of 2, 800 shipments for the year.For performance evaluation purposes, how much actual Logistics Department cost should NOT be charged to the operating divisions at the end of the year?


A) $30, 330
B) $0
C) $19, 530
D) $10, 800

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents