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:

Matriarchal

A social system or family structure where the female, especially the mother, has the central role of authority and decision-making.

Economic

Relating to the production, consumption, and transfer of wealth within a society or country.

Social Power

The capacity or ability of individuals or groups to control or influence the actions, beliefs, or behaviors of others within a social context.

Paid Labor Force

Refers to the segment of the population that is engaged in compensated work, within formal or informal sectors, contributing to the economy.