Hilbun 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 $371,700 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 for performance evaluation purposes?
A)$187,895
B)$158,100
C)$292,950
D)$205,065

Question

Hilbun 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 $371,700 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 for performance evaluation purposes?
A)$187,895 
B)$158,100 
C)$292,950 
D)$205,065

Quizplus · Accepted Answer

The Answer is A

Hilbun Corporation Has Two Operating Divisions-An Atlantic Division and a Pacific