The Corporation "Kay" operates one central plant that has one support department and two production divisions: Division 1 and Division 2. The following data apply to the coming budget year: Budgeted costs of the support department Fixed operating costs $260,000 Variable operating costs $100 per hour Practical capacity 2,000 hours Budgeted long-run usage: Division 1 800 hours per year Division 2 500 hours per year Assume that practical capacity is used to calculate the allocation rates. Further assume that actual usage of the Division 1 was 700 hours and the Division 2 was 400 hours. Required: If a dual-rate cost-allocation method is used, what amount of cost will be allocated to the Division 1? To the Division 2? A. $17,400 and $9,850 B. $174,000 and $105,000 C. $70,000 and $105,000 D. None of them