subject: 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

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Description: subject: 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 LogisticsDep

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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 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 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. Multiple Choice Percentage of Peak- period Capacity Required 45% 55% How much actual Logistics Department cost should not be allocated to the operating divisions at the end of the year? $13,158 Budgeted Shipments 1,880 5,270 $0

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 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. Multiple Choice Percentage of Peak- period Capacity Required 45% 55% How much actual Logistics Department cost should not be allocated to the operating divisions at the end of the year? $13,158 Budgeted Shipments 1,880 5,270 $0

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 7E: Columbia Products Inc. has two divisions, Salem and Seaside. For the month ended March 31, Salem had...

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