Question: 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

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 $43 per shipment. The Logistics Department's fixed costs are budgeted at $433,000 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand. Percentage of Peak Period Capacity Required 30% 70% Actual Shipments 1,750 4,630 Atlantic Division Pacific Division How much Logistics Department cost should be charged to the Atlantic Division at the end of the year for performance evaluation purposes
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