Bierly 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 $34 per shipment. The Logistics Department's fixed costs are budgeted at $345,000 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 $343,680 and fixed costs totaled $356,530. The Atlantic Division had a total of 4,700 shipments and the Pacific Division had a total of 4,900 shipments for the year. How much Logistics Department cost should be charged to the Pacific Division at the end of the year?
A)$408,100
B)$342,694
C)$357,399
D)$424,991

Question

Bierly 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 $34 per shipment. The Logistics Department's fixed costs are budgeted at $345,000 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 $343,680 and fixed costs totaled $356,530. The Atlantic Division had a total of 4,700 shipments and the Pacific Division had a total of 4,900 shipments for the year. How much Logistics Department cost should be charged to the Pacific Division at the end of the year?
A)$408,100 
B)$342,694 
C)$357,399 
D)$424,991

Quizplus · Accepted Answer

The Answer of Bierly 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 $34 per shipment. The Logistics Department's fixed costs are budgeted at $345,000 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 $343,680 and fixed costs totaled $356,530. The Atlantic Division had a total of 4,700 shipments and the Pacific Division had a total of 4,900 shipments for the year. How much Logistics Department cost should be charged to the Pacific Division at the end of the year?
A)$408,100 
B)$342,694 
C)$357,399 
D)$424,991

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