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Long Distance Company's Travel Department had the following budgeted costs for the coming year: Variable costs Fixed costs $34 per trip $143,360 Yearly Trips Monthly
Long Distance Company's Travel Department had the following budgeted costs for the coming year: Variable costs Fixed costs $34 per trip $143,360 Yearly Trips Monthly Peak Trips West Sales Territory Midwest Sales Territory 110 trips 5 170 trips 12 Southern Sales Territory 150 trips 11 Easter Sales Territory 130 trips 8 The actual usage is as follows: West Sales Territory Midwest Sales Territory Southern Sales Territory 100 trips 150 trips 160 trips 140 trips Eastern Sales Territory Using both a fixed and variable rate, what are the respective rates for fixed and variable per trip for the West Sales Territory? Fixed costs are allocated on the basis of monthly peak trips. Oa. 12.5%; $34 Ob. 18.2%; $34 Oc. 18.6%; $34 Od. 17.3%; $34 Oe. None of these choices
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