(Appendix 12B)Vancuren Corporation Has Two Operating Divisions-An East Division and a West

question 44

Multiple Choice

(Appendix 12B) Vancuren 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 $31 per shipment.The Logistics Department's fixed costs are budgeted at $274, 400 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 $215, 820 and fixed costs totaled $294, 690.The East Division had a total of 3, 200 shipments and the West Division had a total of 3, 400 shipments for the year. How much actual Logistics Department cost should not be allocated to the operating divisions at the end of the year?

• A)$31, 510
• B)$11, 220
• C)$20, 290
• D)$0

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