Romano Corporation Allocates Administrative Costs on the Basis of Staff

Multiple Choice

Romano 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 Romano uses dual-cost accounting procedures and fixed administrative costs total $1,000,000,the amount of fixed administrative cost to allocate to Department 1 would be:

A) $400,000.
B) $450,000.
C) $500,000.
D) $850,000.
E) some other amount.