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

question 1

Multiple Choice

Bunyard 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 $45 per shipment. The Logistics Department's fixed costs are budgeted at $212,400 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 $202,400 and fixed costs totaled $223,900. The Atlantic Division had a total of 2,100 shipments and the Pacific Division had a total of 2,300 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) $241,560
• B) $222,839
• C) $251,335
• D) $214,527

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