Gandolf Corporation Allocates Administrative Costs on the Basis of Staff

question 29

Multiple Choice

Gandolf 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 Gandolf 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)some other amount.

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Definitions:

Arcuate Artery

Artery that originates from the interlobar arteries of the kidney and forms an arch between the cortex and medulla of the kidney.

Simple Cuboidal Epithelium

A single layer of cube-shaped cells common in glandular ducts and parts of the kidney, specialized for secretion and absorption.

Proximal Convoluted Tubule

A segment of the nephron in the kidney which reabsorbs water, ions, and nutrients from the filtrate.

Urinary Bladder

A hollow muscular organ that stores urine from the kidneys before disposal by urination.