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

question 17

Multiple Choice

Herriott 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 $43 per shipment. The Logistics Department's fixed costs are budgeted at $209,000 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 $246,960 and fixed costs totaled $217,870. The Atlantic Division had a total of 3,000 shipments and the Pacific Division had a total of 2,600 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)$8,870
• B)$15,030
• C)$6,160
• D)$0

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Definitions:

Cultural Integration

Cultural Integration in the context of organizations refers to the merging of diverse cultures within a company, aiming for inclusivity and a shared corporate identity.

Strategic and Financial

Aspects related to long-term planning and financial management aimed at achieving an organization's key objectives.

Cultural Inspiration

The use of elements from diverse cultures to motivate, guide, or influence individuals or groups, often in creative, educational, or organizational contexts.

Cultural Pluralism

The coexistence of diverse cultures, where cultural differences are accepted and valued within a society or organization.