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

Multiple Choice

(Appendix 12B) Hosang 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 $32 per shipment.The Logistics Department's fixed costs are budgeted at $243, 000 for the year.The fixed costs of the Logistics Department are determined based on peak-period demand. How much Logistics Department cost should be charged to the Atlantic Division at the end of the year?

A) $123, 450
B) $103, 200
C) $135, 450
D) $193, 500