Wollan Corporation has two operating divisionsan East Division and a West Division. The company's Logistics...
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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% | 1550 |
| West Divison | 65% | 5550 |
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 Logistics Department cost should be allocated to the West Division at the end of the year?
$554,742
$509,422
$536,805
$523,162
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