Wollan Corporation Has Two Operating Divisions--An East Division and a West

question 9

Multiple Choice

Wollan Corporation has two operating divisions--an East Division and a West Division. The company's Logistics Department services both divisions. The variable costs of the Logistics Department are budgeted at $44 per shipment. The Logistics Department's fixed costs are budgeted at $237,600 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 $332,880 and fixed costs totaled $253,960. The East Division had a total of 4,300 shipments and the West Division had a total of 3,000 shipments for the year.
How much Logistics Department cost should be allocated to the West Division at the end of the year?

• A) $289,176
• B) $229,644
• C) $241,167
• D) $274,560

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Definitions:

Oval Window

A membrane-covered opening that separates the middle ear from the inner ear and transmits sound vibrations from the ossicles to the cochlea.

Vestibular Sacs

Structures in the inner ear that are responsible for sensing gravity and linear acceleration, helping to maintain balance and spatial orientation.

Olfactory Receptors

Specialized nerve cells in the nose responsible for detecting odors in the environment and conveying the information to the brain.

Odorant Molecules

Chemical particles that are detected by sensory receptors in the nose, leading to the perception of smells.