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Vollan Corporation has two operating divisions-an East Division and a West Division. The company's Logistics Department services both divisions. The ariable costs of the Logistics
Vollan Corporation has two operating divisions-an East Division and a West Division. The company's Logistics Department services both divisions. The ariable costs of the Logistics Department are budgeted at $49 per shipment. The Logistics Department's fixed costs are budgeted at $431,600 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand. East Division West Division Multiple Choice O At the end of the year, actual Logistics Department variable costs totaled $368,082 and fixed costs totaled $434,000. The East Division had a total of 2,540 shipments and the West Division had a total of 4,720 shipments for the year. How much actual Logistics Department cost should not be allocated to the operating divisions at the end of the year? $0 O $14,742 Percentage of Peak- period Capacity $2.400 Required 30% 70% Budgeted Shipments 1,390 5,390 $
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