Trifecta Inc If Trifecta Uses Dual-Cost Accounting Procedures and Variable Administrative Costs

question 66

Multiple Choice

Trifecta Inc. allocates administrative costs on the basis of square footage. Short-run monthly usage and anticipated long-run monthly usage of square footage for Operating Departments 1 and 2 follow. $\begin{array} { l c c c } & \text { Dept. 1 } & \text { Dept. 2 } & \text { Total } \\\text { Short-run usage } & 30,000 & 70,000 & 100,000 \\\text { Long-run usage } & 50,000 & 50,000 & 100,000\end{array}$ If Trifecta uses dual-cost accounting procedures and variable administrative costs total $320,000, the amount of variable administrative cost to allocate to Department 1 would be:

• A)$96,000.
• B)$128,000.
• C)$160,000.
• D)$192,000.
• E)$320,000.

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Definitions:

Female to Male Earnings Ratio

The comparison of the average earnings of women to the average earnings of men in the workforce, often used to evaluate gender wage gaps.

Long-Run Adjustment

Changes in production or operations that a firm can undertake over time to adapt to new conditions, typically involving capital investment.

Assembly-Line Plant

A manufacturing facility where products are assembled in a sequential manner along a conveyor belt or line.

Average Variable Cost (AVC)

The cost per unit produced that varies, found by dividing the total variable expenses by the amount of output generated.