Ampulla Production Studios charges the Sound Effects Department's costs to two operating departments, Audio and Video. Charges are made on the basis of labor-hours. Information pertaining to the labor-hours for the year follow:

Audio video

BUDGET LABOR HOUR FOR YEAR $18000 $27000

ACTUAL LABOR HOURS FOR YEAR $14700 $27300

ANUAL LONG-RUN AVERAGE CAPACITY IN LABOR HOURS $15000 $25000

The following cost pertain to the sound effect department

Budgeted for year Actual for year

Variable cost $315000 $273000

Fixed cost $756000 $819000

1-How much of the Sound Effects Department's variable cost should be charged to the Video Department at yearend for performance evaluation purposes? A. $175,000 B. $175,500 C. $177,450 D. $191,100 E. None of the above

2-How much of the Sound Effects Department's fixed cost should be charged to the Audio department at year-end for performance evaluation purposes? A. $264,600 B. $283,500 C. $302,400 D. $307,125 E. None of the above