Romano corporation allocates administrative costs on the

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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.


Dept. 1 Dept. 2 Total
  Short-run usage (hours) 86,000 126,000 212,000
  Long-run usage (hours) 96,000 116,000 212,000

If Romano uses dual-cost accounting procedures and fixed administrative costs total $1,060,000, the amount of fixed administrative cost to allocate to Department 1 would be?

Reference no: EM13577649

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