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Woitan Corporation has two operating divisions-an East Division and a West Division. The company's Logistics Department services both divisions, The variable costs of the Logistics
Woitan Corporation has two operating divisions-an East Division and a West Division. The company's Logistics Department services both divisions, The variable costs of the Logistics Department are budgeted at $38 per shipment. The Logistics Department's fixed costs are budgeted at $419,600 for the year. The fixed costs of the Logistics Department are determined based on peak period demand. Percentage of Peak- period Capacity Budgeted Required Shipments East Division 30% 1,800 West Division 70% 4,980 At the end of the year, actual Logistics Department variable costs totaled $294.084 and fixed costs totaled $427,000. The East Division had a total of 2,670 shipments and the West Division had a total of 4,890 shipments for the year. How much Logistics Department cost should be allocated to the West Division at the end of the year? Multiple Choice $465,897 O $479,540 $465,897 $479,540 $452,157 $489,121
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