Illumination Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget year:

Budgeted costs of operating the plant for 2,000 to 3,000 hours:
Fixed operating costs per year	$500,000
Variable operating costs	$850		per hour
Budgeted longrun usage per year:
Flashlight Division	2,000		hours
Night Light Division	1,000		hours
Practical capacity	4,000		hours

Assume that practical capacity is used to calculate the allocation rates.

Actual usage for the year by the Flashlight Division was 1,500 hours and by the Night Light Division was 800 hours. If a

dualrate

costallocation

method is used, what amount of operating costs will be budgeted for the Night Light Division?

A.

$780,000

B.

$975,000

C.

$950,000

D.

$930,000