Multiple Choice
(Appendix 12B) Vancuren 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 $31 per shipment.The Logistics Department's fixed costs are budgeted at $274, 400 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 $215, 820 and fixed costs totaled $294, 690.The East Division had a total of 3, 200 shipments and the West Division had a total of 3, 400 shipments for the year. How much Logistics Department cost should be allocated to the West Division at the end of the year?
A) $246, 758
B) $262, 990
C) $317, 463
D) $297, 480
Correct Answer:
Verified
Correct Answer:
Verified
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