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 $56 per shipment. The Logistics Department's fixed costs are budgeted at $392,500 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	35%	1,550
West Division	65%	5,550

At the end of the year, actual Logistics Department variable costs totaled $434,844 and fixed costs totaled $417,000. The East Division had a total of 2,680 shipments and the West Division had a total of 5,030 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

$27,584