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

Multiple Choice

Marazzi 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 $47 per shipment. The Logistics Department's fixed costs are budgeted at $328,600 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 $333,270 and fixed costs totaled $340,240. The East Division had a total of 2,300 shipments and the West Division had a total of 4,600 shipments for the year.
-How much Logistics Department cost should be allocated to the West Division at the end of the year?

A) $462,650
B) $477,360
C) $435,267
D) $449,007