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

---

Definitions:

Coordinating Movements

The process of using different parts of the body together smoothly and efficiently.

Sensory Information

Data received by the sensory organs (e.g., eyes, ears, skin, nose, tongue) that is then processed by the brain to form perceptions of the environment.

Thalamus

A brain structure that acts as a relay station, processing and transmitting information to various parts of the brain.

Hypothalamus

A crucial brain structure involved in controlling various endocrine functions via the pituitary gland, playing key roles in the regulation of the autonomic nervous system and maintaining the body's homeostasis.