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

question 17

Multiple Choice

Omeara 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 $48 per shipment.The Logistics Department's fixed costs are budgeted at $431,600 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 $505,920 and fixed costs totaled $438,080.The Atlantic Division had a total of 3,900 shipments and the Pacific Division had a total of 6,300 shipments for the year.How much Logistics Department cost should be charged to the Pacific Division at the end of the year for performance evaluation purposes?

• A)$583,059
• B)$626,100
• C)$641,040
• D)$568,976

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Definitions:

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