Nichols 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. Department 1Department 2TotalShort-run usage (hours)45,00055,000100,000Long-run usage (hours)48,00052,000100,000Variable and fixed administrative costs total $180,000 and $400,000, respectively. If Nichols uses dual-cost accounting procedures, the total amount of administrative cost to allocate to Department 2 would be:

A. $307,000.
B. $319,000.
C. $313,600.
D. $301,600.
E. None of the answers is correct.


Answer: A

Business

You might also like to view...

The perceived cost of a purchase decision includes each of the following, except:

A) the actual price or cost of the product B) the subjective costs associated with the search C) the economic conditions of the area D) the opportunity costs of foregoing other activities to make the search

Business

All of the following are examples of some of the many Internet search services on the Internet EXCEPT:

A) Lycos. B) Yahoo! C) Webcrawler. D) Nielsen. E) Google.

Business

Burger Prince is one of the largest hamburger chains in the nation, and fiercely competitive with

the well-known chain of Captain Hook Seafood House restaurants. Captain Hook has recently introduced a new line of hamburgers in order to expand beyond seafood. Burger Prince received information that it believed was reliable indicating that the Captain Hook's burgers contained substantial amounts of filler. Burger Prince then ran advertisements saying that its pure beef burgers were better than the Captain Hook's burgers that used filler. Which of the following is true? A) Burger prince would be liable for invasion of privacy if the formula for Captain Hook's burgers was not publicly available. B) This is an example of intentional interference with contractual relations. C) Burger Prince is liable for product disparagement because the statement about the use of filler was false. D) Captain Hook will not be able to win a product disparagement case here. E) This is a case of palming off.

Business

When asking customers questions, do all of the following, EXCEPT: ____.

A. Encourage the other person to articulate motivations. B. Ask "yes" and "no" questions. C. Paraphrase to make sure you understand the message. D. Pretend to understand.

Business