Answer the Following Questions Using the Information Below:
Illumination Corp

question 114

Multiple Choice

Answer the following questions using the information below:
Illumination Corp operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget year:
Budgeted costs of operating the plant for 2,000 to 3,000 hours:
$\begin{array}{lr}\text { Fixed operating costs per year } & \$ 500,000 \\\text { Variable operating costs } & \$ 800 \text { per hour } \\\text { Budgeted long-run usage per year: } & 2,000 \text { hours } \\\text { Flashlight Division } & 1000 \text { hours } \\\text { Night Light Division } & 4,000 \text { hours }\end{array}$ Assume that practical capacity is used to calculate the allocation rates.
Actual usage for the year by the Flashlight Division was 1,500 hours and by the Night Light Division was 800 hours.
-If a dual-rate cost-allocation method is used,what amount of operating costs will be budgeted for the Night Light Division?

• A) $890,000
• B) $900,000
• C) $925,000
• D) $835,000

---

Definitions:

Moreland And Levine Theory

The Moreland and Levine Theory focuses on the processes through which individuals become integrated into a group, emphasizing the stages of membership and the factors that influence group socialization and cohesion.

Adaptation

A process by which an organism or species becomes better suited to its environment.

Role Confusion

A situation in which an individual or member of a group is unsure about the expectations for their behavior within a given context or social position, often leading to stress and uncertainty.

Centralized Communication

A communication structure in which all messages and decisions flow through a central point or authority, minimizing direct communication between other members.