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 $38 per shipment. The Logistics Department's fixed costs are budgeted at $451,000 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 35?% 1810? Pacific Division 65?% 4690? How much Logistics Department cost should be charged to the Atlantic Division at the end of the year for performance evaluation purposes?
A. $243,800
B. $226,630
C. $331,685
D. $196,835
Answer: B
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