Omeara 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 $48 per shipment. The Logistics Department's fixed costs are budgeted at $431,600 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 $505,920 and fixed costs totaled $438,080. The Atlantic Division had a total of 3,900 shipments and the Pacific Division had a total of 6,300 shipments for the year. How much Logistics Department cost should be charged to the Pacific Division at the end of the year for performance evaluation purposes?
A)$583,059
B)$626,100
C)$641,040
D)$568,976

Question

Omeara 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 $48 per shipment. The Logistics Department's fixed costs are budgeted at $431,600 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 $505,920 and fixed costs totaled $438,080. The Atlantic Division had a total of 3,900 shipments and the Pacific Division had a total of 6,300 shipments for the year. How much Logistics Department cost should be charged to the Pacific Division at the end of the year for performance evaluation purposes?
A)$583,059 
B)$626,100 
C)$641,040 
D)$568,976

Quizplus · Accepted Answer

The Answer of Omeara 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 $48 per shipment. The Logistics Department's fixed costs are budgeted at $431,600 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 $505,920 and fixed costs totaled $438,080. The Atlantic Division had a total of 3,900 shipments and the Pacific Division had a total of 6,300 shipments for the year. How much Logistics Department cost should be charged to the Pacific Division at the end of the year for performance evaluation purposes?
A)$583,059 
B)$626,100 
C)$641,040 
D)$568,976

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