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

question 13

Multiple Choice

Soland 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 $46 per shipment. The Logistics Department's fixed costs are budgeted at $253,700 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 $342,000 and fixed costs totaled $273,230. The Atlantic Division had a total of 4,400 shipments and the Pacific Division had a total of 2,800 shipments for the year. For performance evaluation purposes, how much actual Logistics Department cost should NOT be charged to the operating divisions at the end of the year?

• A)$30,330
• B)$0
• C)$19,530
• D)$10,800

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Definitions:

Personality Theories

A set of approaches and models aimed at explaining the variations in individuals' thoughts, feelings, and behaviors by outlining differing personality types and traits.

Radical Behaviorism

A perspective in psychology, advanced by B.F. Skinner, that views behavior as a subject of natural science without recourse to inner psychological events.

Computer Competence

The ability to use computers effectively and efficiently, including understanding hardware, software, and internet functionalities.

Skinner's Explanation

Refers to B.F. Skinner's behaviorist theory, which emphasizes the role of environmental factors in shaping behavior through reinforcement and punishment.