The Corporation Victor 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.

1) If a single-rate cost-allocation method is used, what amount of cost will be allocated to the Division 1? To the Division 2? Assume actual usage is used to allocate operating costs.

2) If a dual-rate cost-allocation method is used, what amount of cost will be allocated to the Division 1? To the Division 2?

3) If a single-rate cost-allocation method is used, what amount of cost will be allocated to the Division 1? To the Division 2?