PLEASE help me with these 2 problems! And please show all work! Thank you so muc

Question

PLEASE help me with these 2 problems! And please show all work!

Thank you so much!

Marazzl 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 $25 per shipment The Logistics Department's fixed costs are budgeted at $350,700 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand. At the end of the year, actual Logistics Department variable costs totaled $210,408 and fixed costs totaled $363,000. The East Division had a total of 2,710 shipments and the West Division had a total of 5,260 shipments for the year. How much actual Logistics Department cost should not be allocated to the operating divisions at the end of the year $ 12,300 $ 0 $ 11,158 $ 23,458 Marazzl 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 $47 per shipment. The Logistics Department's fixed costs are budgeted at $328,600 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand. At the end of the year, actual Logistics Department variable costs totaled $333,270 and fixed costs totaled $340,240. The East Division had a total of 2,300 shipments and the West Division had a total of 4,600 shipments for the year. How much Logistics Department cost should be allocated to the West Division at the end of the year $449,007 $477,360 $462,650 $435,267

Explanation / Answer

1)

Solution:

The actual logistics department costs to be allocated to operating divisions:

Variable cost of East Division = 2,710 shipment * $25 = $67,750

Variable cost of West Division = 5,260 shipment * $25 = $131,500

Fixed costs of Logistics department =                            $350,700

Total costs to be allocated                                            = $549,960

Hence cost that need not be allocated to operating divisions = $210,408 + $363,000 - $549,960

= $23,458

Therefore, the correct answer is option D.

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