Macumber Corporation has two operating divisions-an Atlantic Division and a Pacific Division. The company's Logistics Department services both divisions. The variable costs of the Logistics Department are budgeted at $36 per shipment. The Logistics Department's fixed costs are budgeted at $234,000 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand. Percentage of Peak Period Capacity RequiredActual ShipmentsAtlantic Division 30% 1,100 Pacific Division 70% 3,400 ?How much Logistics Department cost should be charged to the Atlantic Division at the end of the year for performance evaluation purposes?
A. $118,800
B. $109,800
C. $96,800
D. $198,000
Answer: B
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