(Appendix 12B)Hosang 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 $32 per shipment.The Logistics Department's fixed costs are budgeted at $243, 000 for the year.The fixed costs of the Logistics Department are determined based on peak-period demand. How much Logistics Department cost should be charged to the Atlantic Division at the end of the year?
A)$123, 450
B)$103, 200
C)$135, 450
D)$193, 500

Question

(Appendix 12B)Hosang 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 $32 per shipment.The Logistics Department's fixed costs are budgeted at $243, 000 for the year.The fixed costs of the Logistics Department are determined based on peak-period demand.  How much Logistics Department cost should be charged to the Atlantic Division at the end of the year?
A)$123, 450 
B)$103, 200 
C)$135, 450 
D)$193, 500

Quizplus · Accepted Answer

The Answer of (Appendix 12B)Hosang 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 $32 per shipment.The Logistics Department's fixed costs are budgeted at $243, 000 for the year.The fixed costs of the Logistics Department are determined based on peak-period demand.  How much Logistics Department cost should be charged to the Atlantic Division at the end of the year?
A)$123, 450 
B)$103, 200 
C)$135, 450 
D)$193, 500

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