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Wollan 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
Wollan 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 $35 per shipment. The Logistics Department's fixed costs are budgeted at $372,000 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand. At the end of the year, actual Logistics Department variable costs totaled $284,058 and fixed costs totaled $383,000. The East Division had a total of 2,440 shipments and the West Division had a total of 5,300 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 $13,158 $0 $24,158 $11,000
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