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

question 13

Multiple Choice

Macumber 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 $36 per shipment. The Logistics Department's fixed costs are budgeted at $234,000 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 for performance evaluation purposes?

• A) $198,000
• B) $109,800
• C) $118,800
• D) $96,800

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