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:

International Companies

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Opportunity

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