Long Distance Company's travel department had the following budgeted costs for the coming year:

Variable costs	$34 per trip
Fixed costs	$143,360

	Yearly Trips	Monthly Peak Trips
West Sales Territory	110 trips	5
Midwest Sales Territory	170 trips	12
Southern Sales Territory	150 trips	15
Eastern Sales Territory	130 trips	8

The actual usage is given below:

West Sales Territory	100 trips
Midwest Sales Territory	150 trips
Southern Sales Territory	160 trips
Eastern Sales Territory	140 trips

Using both a fixed and variable rate with fixed costs allocated on the basis of monthly peak trips, what will the West Sales Territory be charged for the year? (round to the nearest dollar)

a.$31,498

b.$30,638

c.$21,320

d.$29,492

e.None of these choices are correct.

Answer rating: 100% (QA)

Fixed costs 143360 Divide by Monthly Peak ... View the full answer