Question: Question 6 Save Answer 1.5 points Grassley Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and anticipated long-run monthly
Question 6 Save Answer 1.5 points 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. Department 1 Department 2 Total Short-run usage (hours) 40,000 Long-run usage (hours) 45,000 100,000 100,000 60,000 55,000 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: $90,000. $100,000. $80,000. None of the answers is correct. $85,000.
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