Marazzi Corporation Has Two Operating Divisions-An East Division and a West

question 18

Multiple Choice

Marazzi 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 $47 per shipment. The Logistics Department's fixed costs are budgeted at $328,600 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 $333,270 and fixed costs totaled $340,240. The East Division had a total of 2,300 shipments and the West Division had a total of 4,600 shipments for the year.
-How much Logistics Department cost should be allocated to the West Division at the end of the year?

• A)$462,650
• B)$477,360
• C)$435,267
• D)$449,007

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Definitions:

Wing

A limb adapted for flight or gliding, found in birds, bats, insects, and some extinct dinosaurs, with structures varying widely among species.

Bat

A nocturnal flying mammal capable of true flight, with forelimbs that form webbed wings.

Convergent Evolution

The process by which unrelated or distantly related organisms evolve similar body forms, coloration, organs, or adaptations as a result of similar environmental pressures.

Sea Snakes

Aquatic reptiles found primarily in tropical oceans, known for their venomous bites and adapted to a fully marine life.