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

question 13

Multiple Choice

Hilbun 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 $34 per shipment.The Logistics Department's fixed costs are budgeted at $371,700 for the year.The fixed costs of the Logistics Department are determined based on peak-period demand. How much Logistics Department cost should be charged to the Atlantic Division at the end of the year for performance evaluation purposes?

• A)$187,895
• B)$158,100
• C)$292,950
• D)$205,065

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Definitions:

Sensory Stimulation

Any activity that arouses one or more of the five senses: sight, sound, touch, taste, and smell, with the aim of enhancing learning or enjoyment.

Automatic Response

A behavior that is performed without conscious thought as a reaction to a specific stimulus.

Fetal Alcohol Syndrome

A condition in a child resulting from alcohol exposure during the mother's pregnancy, causing growth problems, facial abnormalities, and intellectual disabilities.

Visual Impairments

A decrease in the ability to see to a significant degree that cannot be corrected fully with conventional glasses.