Answer: the administrative cost that should be assigned to the East division is $85,500.
Explanation: The East division should be assigned with the 45% of the administrative revenues since the total revenues obtained by the two divisions is $1,800,000 plus $2,200,000 equals $4,000,000. $4,000,000 is the total and $1,800,000 is the 45% of the total ($1,800,000 times 100 divided by $4,000,000). 45% of $190,000 is $85,500.