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

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