(Appendix 12B)Bierly Corporation Has Two Operating Divisions-An Atlantic Division and a Pacific

Multiple Choice

(Appendix 12B) Bierly 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 $34 per shipment.The Logistics Department's fixed costs are budgeted at $345, 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 $343, 680 and fixed costs totaled $356, 530.The Atlantic Division had a total of 4, 700 shipments and the Pacific Division had a total of 4, 900 shipments for the year.How much Logistics Department cost should be charged to the Pacific Division at the end of the year?

A) $408, 100
B) $342, 694
C) $357, 399
D) $424, 991