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

question 186

Multiple Choice

Erholm 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 $31 per shipment. The Logistics Department's fixed costs are budgeted at $411,800 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 $290,700 and fixed costs totaled $431,950. The Atlantic Division had a total of 3,900 shipments and the Pacific Division had a total of 5,100 shipments for the year. How much Logistics Department cost should be charged to the Pacific Division at the end of the year for performance evaluation purposes?

• A) $391,453
• B) $425,770
• C) $445,498
• D) $409,502

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Definitions:

Suprahyoid Triangle

An anatomical region of the neck bounded by the mandible, the stylohyoid muscle, and the digastric muscle, containing structures above the hyoid bone.

Superior Carotid Triangle

An anatomical area of the neck, bounded by the sternocleidomastoid muscle, the stylohyoid muscle, and the posterior belly of the digastric muscle, containing the carotid arteries.

Submandibular Triangle

An anatomical region of the neck bounded by the mandible and two muscles, containing the submandibular gland among other structures.

Lateral Thigh

The outer part of the thigh, often related to the muscles and tissues located on the side of the leg between the hip and the knee.