1. The market value of Galleons debt and equity capital totals $180 million, 75% of which is equity related. An analysis conducted by the company's finance department revealed a 7% after-tax cost of debt capital and a 11% cost of equity capital. On the basis of this information, Galleons weighted-average cost of capital:

2. Nichols 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)	45,000	55,000	100,000
Long-run usage (hours)	48,000	52,000	100,000

Variable and fixed administrative costs total $200,000 and $400,000, respectively. If Nichols uses dual-cost accounting procedures, the total amount of administrative cost to allocate to Department 2 would be: