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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 $44 per shipment. The Logistics Department's fixed costs are budgeted at $391,700 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand. Percentage of Peak- period Capacity Required 45% 55% Budgeted Shipments 1,730 5,630 East Division West Division At the end of the year, actual Logistics Department variable costs totaled $366,680 and fixed costs totaled $401,000. The East Division had a total of 3,000 shipments and the West Division had a total of 5,240 shipments for the year. How much Logistics Department cost should be allocated to the West Division at the end of the year
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