A 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 $52 per shipment. The Logistics Department's fixed costs are budgeted at $378,400 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 $378,378 and fixed costs totaled $389,000. The East Division had a total of 2,410 shipments and the West Division had a total of 4,610 shipments for the year.

How much actual Logistics Department cost should not be allocated to the operating divisions at the end of the year?

Percentage of Peak-period Capacity Required Budgeted Shipments 2,170 5,750 East Division West Division 2 5% 75%