Komlos Corporation Has Two Operating Divisions-An East Division and a West

question 6

Multiple Choice

Komlos 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 $48 per shipment. The Logistics Department's fixed costs are budgeted at $253,000 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 $360,620 and fixed costs totaled $267,210. The East Division had a total of 4,200 shipments and the West Division had a total of 3,100 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) $10,220
• B) $24,430
• C) $0
• D) $14,210

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Definitions:

Allantois

A membranous sac that develops from the posterior part of the yolk sac in the embryos of mammals, birds, and reptiles, involved in respiration and excretion.

Gametogenesis

The process through which gametes, or sex cells, are produced in the reproductive organs of an organism.

Centromeres

The region on a chromosome where the two sister chromatids attach and that is crucial for proper chromosome segregation during cell division.

Sister Chromatids

Refers to two identical strands joined by a common centromere, formed from the replication of a chromosome during S phase of the cell cycle.