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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

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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 Short-run usage (hours) Long-run usage (hours) Department 1 50,809 58,000 Department 2 70,000 62,000 Total 120,000 120,000 1 If Grassley uses dual-cost accounting procedures and variable administrative costs total $270,000, the amount of variable administrative cost to allocate to Department 1 would be: (Do not round Intermediate calculations.) Multiple Choice . $112,500. S108,000. S130,500. Sno $120,000. () None of the answers is correct

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