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 $39 per shipment. The Logistics Department's fixed costs are budgeted at $402,400 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand. Percentage of Peak-period Capacity RequiredBudgeted ShipmentsEast Division 15?% 1710? West Division 85?% 5440? At the end of the year, actual Logistics Department variable costs totaled $300,105 and fixed costs totaled $428,000. The East Division had a total of 2560 shipments and the West Division had a total of 4850 shipments for the year.How much actual Logistics Department cost should
not be allocated to the operating divisions at the end of the year?
A. $25,600
B. $36,715
C. $0
D. $11,115
Answer: B
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