(Appendix 12B)Bierly 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 $345, 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 $343, 680 and fixed costs totaled $356, 530.The Atlantic Division had a total of 4, 700 shipments and the Pacific Division had a total of 4, 900 shipments for the year.How much Logistics Department cost should be charged to the Pacific Division at the end of the year?
A)$408, 100
B)$342, 694
C)$357, 399
D)$424, 991

Question

(Appendix 12B)Bierly 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 $345, 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 $343, 680 and fixed costs totaled $356, 530.The Atlantic Division had a total of 4, 700 shipments and the Pacific Division had a total of 4, 900 shipments for the year.How much Logistics Department cost should be charged to the Pacific Division at the end of the year?
A)$408, 100 
B)$342, 694 
C)$357, 399 
D)$424, 991

Quizplus · Accepted Answer

The Answer of (Appendix 12B)Bierly 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 $345, 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 $343, 680 and fixed costs totaled $356, 530.The Atlantic Division had a total of 4, 700 shipments and the Pacific Division had a total of 4, 900 shipments for the year.How much Logistics Department cost should be charged to the Pacific Division at the end of the year?
A)$408, 100 
B)$342, 694 
C)$357, 399 
D)$424, 991

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