(Appendix 11B) Wollan Corporation Has Two Operating Divisions--An East Division

question 12

Multiple Choice

(Appendix 11B) 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:

Uppermost Layer

Refers to the topmost layer of a material or structure, such as the Earth's surface or the atmosphere.

Tsunami

A series of ocean waves with extremely long wavelengths caused by large-scale disturbances such as underwater earthquakes, landslides, or volcanic eruptions.

Earthquake

An abrupt and intense quivering of the earth's surface, frequently resulting from shifts in the Earth's crust or activity from volcanoes.

Oceanic Trench

A deep, elongated depression in the ocean floor caused by the subduction of one tectonic plate under another.