Wollan Corporation has two operating divisionsan East Division and a West Division. The company's Logistics Department services both divisions. The variable costs of the Logistics Department are budgeted at $26 per shipment. The Logistics Department's fixed costs are budgeted at $361,600 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand.

	Percentage of Peak-period Capacity Required	Budgeted Shipments
East Division	40%	2,250
West Division	60%	5,040

At the end of the year, actual Logistics Department variable costs totaled $215,832 and fixed costs totaled $368,000. The East Division had a total of 2,920 shipments and the West Division had a total of 4,900 shipments for the year.

How much actual Logistics Department cost should not be allocated to the operating divisions at the end of the year?

Multiple Choice

• $18,912

• $0

• $12,512

• $6,400