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Grassley Corporation Allocates Administrative Costs on the Basis of Staff

Question 47

Multiple Choice

Grassley Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and anticipated long-run monthly usage of staff hours for Operating Departments 1 and 2 follow.
Grassley Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and anticipated long-run monthly usage of staff hours for Operating Departments 1 and 2 follow.   If Grassley uses dual-cost accounting procedures and variable administrative costs total $200,000, the amount of variable administrative cost to allocate to Department 1 would be: A)  $80,000. B)  $85,000. C)  $90,000. D)  $100,000. E)  None of the answers is correct.
If Grassley uses dual-cost accounting procedures and variable administrative costs total $200,000, the amount of variable administrative cost to allocate to Department 1 would be:


A) $80,000.
B) $85,000.
C) $90,000.
D) $100,000.
E) None of the answers is correct.

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