Subject: accounting Wollan Corporation has two operating divisions-an East Division and a West Division. The company's Logistics Departmentservices both divisions. The variable costs of the Logistics Department are budgeted at $35 per shipment. The LogisticsDepartment's fixed costs are budgeted at $372,000 for the year. The fixed costs of the Logistics Department are determinedbased on peak-period demand.East DivisionWest DivisionMultiple ChoiceAt the end of the year, actual Logistics Department variable costs totaled $284,058 and fixed costs totaled $383,000. The EastDivision had a total of 2,440 shipments and the West Division had a total of 5,300 shipments for the year.$13,158How much actual Logistics Department cost should not be allocated to the operating divisions at the end of the year?$0Percentage of Peak-period Capacity$24,158Required45%55%$11,000BudgetedShipments1,8805,270

This question deals with cost allocation in a company that has two operating divisions - an East…

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. East Division West Division Percentage of Peak- period Capacity Required 45% 55% Budgeted Shipments 1,880 5,270 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?