Krikorian 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 $37 per shipment. The Logistics Department's fixed costs are budgeted at $330,600 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 Altlantic Division at the end of the year for performance evaluation purposes?
A) $198,840
B) $272,600
C) $169,200
D) $218,080

Question

Krikorian 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 $37 per shipment. The Logistics Department's fixed costs are budgeted at $330,600 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 Altlantic Division at the end of the year for performance evaluation purposes?
A) $198,840 
B) $272,600 
C) $169,200 
D) $218,080

Quizplus · Accepted Answer

The Answer of Krikorian 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 $37 per shipment. The Logistics Department's fixed costs are budgeted at $330,600 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 Altlantic Division at the end of the year for performance evaluation purposes?
A) $198,840 
B) $272,600 
C) $169,200 
D) $218,080

Krikorian Corporation Has Two Operating Divisions-An Atlantic Division and a Pacific