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

question 278

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:

Checking Locks

A behavior often associated with obsessive-compulsive disorder, characterized by the compulsive need to repeatedly check if doors are locked.

Exposure And Response Prevention

Type of therapy in which individuals with anxiety symptoms are exposed repeatedly to the focus of their anxiety but prevented from avoiding it or engaging in compulsive responses to the anxiety.

Compulsive Behavior

Actions performed persistently and repetitively without necessarily leading to an actual reward or pleasure, often associated with psychological disorders such as OCD.

Extinguishes Anxiety

A process or method that effectively reduces or eliminates feelings of anxiety.