(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 actual Logistics Department cost should not be allocated to the operating divisions at the end of the year?
A)$31, 510
B)$11, 220
C)$20, 290
D)$0

Question

(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 actual Logistics Department cost should not be allocated to the operating divisions at the end of the year?
A)$31, 510 
B)$11, 220 
C)$20, 290 
D)$0

Quizplus · Accepted Answer

The Answer of (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 actual Logistics Department cost should not be allocated to the operating divisions at the end of the year?
A)$31, 510 
B)$11, 220 
C)$20, 290 
D)$0

(Appendix 12B)Vancuren Corporation Has Two Operating Divisions-An East Division and a West