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

question 27

Multiple Choice

Omeara 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 $48 per shipment. The Logistics Department's fixed costs are budgeted at $431,600 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 $505,920 and fixed costs totaled $438,080. The Atlantic Division had a total of 3,900 shipments and the Pacific Division had a total of 6,300 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)$583,059
• B)$626,100
• C)$641,040
• D)$568,976

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Definitions:

Immune System

A complex network of cells, tissues, and organs that work together to defend the body against attacks by foreign invaders such as bacteria, viruses, and parasites.

Motor Neurons

Nerve cells that transmit signals from the central nervous system to muscles or glands, leading to action or movement.

Receptors

Biological structures or substances that receive or bind with specific molecules, such as neurotransmitters or hormones, to trigger a physiological response.

Spinal Cord

The major bundle of nerves running down the back in vertebrates, connecting the brain to the rest of the body and responsible for transmitting neural signals.