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

question 43

Multiple Choice

Gretter 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 $399,600 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 $305,040 and fixed costs totaled $418,680.The Atlantic Division had a total of 2,600 shipments and the Pacific Division had a total of 5,600 shipments for the year.For performance evaluation purposes,how much actual Logistics Department cost should NOT be charged to the operating divisions at the end of the year?

• A) $28,920
• B) $9,840
• C) $19,080
• D) $0

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Definitions:

Dialectic Personalities

Individuals who embody or exhibit a synthesis of contrasting or opposing viewpoints, leading to a more comprehensive perspective.

Csikszentmihalyi

A psychologist known for his work on the concept of flow, a state of absorption where one's skills are fully involved in overcoming a challenge that is just about manageable.

Left-brained

Referring to a person who is more analytical, logical, and detail-oriented, traditionally thought to be associated with the left hemisphere of the brain.

Right-brained

Pertaining to the cognitive style thought to be characteristic of the brain's right hemisphere, often associated with creativity, intuition, and holistic thinking.