Marko Company opoerates a transportation services department that provides shipping for its two operating distribution centers, Metro Center and Urban Center. The budgeted cost for the transportation services department is $285,000 per year plus $0.65 per mile. The fixed cost of the transportation services department are determined by peak-period requirements of the two distribution centers. Company data for shipping miles this past year are shown in the table below:

QUESTION 6 Marko Company opoerates a transportation services department that provides shipping for its two operating distribution centers, Metro Center and Urban Center. The budgeted cost for the transportation services department is $285,000 per year plus $0.65 per mile. The fixed cost of the transportation services department are determined by peak-period requirements of the two distribution centers. Company data for shipping miles this past year are shown in the table below: Metro Center Budgeted Shipping 125,000 miles Miles Peak-period Shipping 150,000 miles Miles Actual Shipping Miles 120.000 miles Urban Center 275.000 miles 350,000 miles 280,000 miles For the year the actual variable shipping costs were $275,000 and the actual fixed shipping costs were $290,000. How much of the variable shipping costs should be allocated to the Urban Center