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

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.