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Wollan Corporation has two operating divisions-an East Division and a West Division. The company's Logistics...

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Accounting

image 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 $53 per shipment. The Logistics Department's fixed costs are budgeted at $385,100 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 $403,300 and fixed costs totaled $387,000. The East Division had a total of 2,570 shipments and the West Division had a total of 4,830 shipments for the year. How much Logistics Department cost should be allocated to the West Division at the end of the year? Multiple Choice $506,305 $478,922 $514,785 $492,662

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