Grassley Corporation Allocates Administrative Costs on the Basis of Staff

question 30

Multiple Choice

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.

If Grassley uses dual-cost accounting procedures and variable administrative costs total $200,000, the amount of variable administrative cost to allocate to Department 1 would be:

• A) $80,000.
• B) $85,000.
• C) $90,000.
• D) $100,000.
• E) None of the answers is correct.

Learn how to predict and manage distractions effectively.

Know when and how to seek academic advice for refocusing academic or career paths.

Appreciate the significance of planning assignments well before due dates.

Consider attention span in academic planning.

---

Definitions:

Arterioles

Small arteries that lead to capillaries, controlling blood flow and pressure through regulation of their diameter.

Large Arteries

Blood vessels that carry blood away from the heart, characterized by their large diameter and elastic walls to withstand high pressure.

Large Veins

Vessels that carry blood towards the heart, generally transporting deoxygenated blood from various parts of the body.

Baroreceptor Reflex

Detects changes in blood pressure and produces changes in heart rate, heart force of contraction, and blood vessel diameter that return blood pressure to homeostatic levels.