1. 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.

   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.	$174,000 and $105,000
   	B.	$70,000 and $105,000
   	C.	None of them
   	D.	$17,400 and $9,850