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 $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.

	Percentage of Peak-period Capacity Required	Budgeted Shipments
East Division	30%	1,390
West Division	70%	5,390

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?

Multiple Choice

• $0

• $14,742

• $2,400

• $12,342