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

question 282

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 actual Logistics Department cost should not be allocated to the operating divisions at the end of the year?

• A) $28,040
• B) $0
• C) $16,360
• D) $11,680

---

Definitions:

Employment Contracts

Legally binding agreements between an employer and an employee, outlining the terms and conditions of employment.

Provision

A specific clause within a legal document or contract that stipulates a condition or requirement.

Usurious Transaction

A lending agreement that involves charging an interest rate above the limit established by law.

Evidence Of Usury

Evidence of usury involves documentation or proof that a lender charged an interest rate above the legal limit established by law, making a loan agreement illegal or subject to penalties.