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

question 28

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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Definitions:

Habituation

A decrease in responsiveness to a specific stimulus as a result of repeated experience with it.

Sensitization

An increased reactivity to all environmental events following exposure to an intense stimulus.

Behavioral Contrast

A phenomenon in which a change in the reinforcement conditions of one behavior leads to an opposite change in the rate of another behavior.