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

question 28

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 Logistics Department cost should be allocated to the West Division at the end of the year?

• A) $340,187
• B) $256,238
• C) $325,900
• D) $266,613

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Definitions:

Cowan (2010)

Refers to research or findings by cognitive psychologist Nelson Cowan regarding cognitive development, specifically focusing on the theory of working memory.

Acoustic Encoding

A cognitive process that allows information to be remembered as a sequence of sounds.

Sensory Encoding

The process by which sensory information is converted into a form that the brain’s nervous system can understand and process.

Semantic Encoding

The process of converting information into a meaningful context, allowing for better retention and recall.