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Subject Company's Travel Department had the following budgeted costs for the coming year Variable costs Fixed costs $34 per trip $143,360 West Sales Territory
Subject Company's Travel Department had the following budgeted costs for the coming year Variable costs Fixed costs $34 per trip $143,360 West Sales Territory Yearly Trips Monthly Peak Trips 110 trips 5 Midwest Sales Territory 170 trips 12 Southern Sales Territory 150 trips 15 Eastern Sales Territory 130 trips 8 The actual usage is as follows: 100 trips West Sales Territory 150 trips Midwest Sales Territory 160 trips Southern Sales Territory 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. 12.5%; $34 19.6%; $34 18.2%; $34 19%; $34 None of these choices
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