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Bearley Corporation has two operating divisions - an Eastern Division and a Western Division. The company's Logistics Department services both divisions. The variable costs of
Bearley Corporation has two operating divisions - an Eastern Division and a Western 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 that must be satisfied. Bearley Corporation Percentage of Peak-period Capacity Required Budgeted Shipments Eastern Division 30% 1,700 Western Division 70% 5,200 At the end of the year, actual Logistics Department variable costs totaled $343,680 and fixed costs totaled $356,530. The Eastern Division had a total of 4,700 shipments and the Western Division had a total of 4,900 shipments for the year. How much of the Logistics Department cost should be charged to the Western Division at the end of the year? Group of answer choices $408,100 $357,399 $424,991 $342,694
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