(Appendix 12B)Soland Corporation Has Two Operating Divisions-An Atlantic Division and a Pacific

question 6

Multiple Choice

(Appendix 12B) Soland 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 $46 per shipment.The Logistics Department's fixed costs are budgeted at $253, 700 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 $342, 000 and fixed costs totaled $273, 230.The Atlantic Division had a total of 4, 400 shipments and the Pacific Division had a total of 2, 800 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)$30, 330
• B)$0
• C)$19, 530
• D)$10, 800

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