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

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 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

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