=+13-18 K Dual-rate method, budgeted versus actual costs and quantities (continuation of 13-17)

OBJECTIVES 1, 2 Velvet Ltd decides to examine the effect of using the dual-rate method for allocating truck costs to each round-trip. At the start of 2014, the budgeted costs were:

Variable cost per round-trip $1 350 Fixed costs $47 500 The actual results for the 45 round-trips made in 2014 were:

Variable costs $58 500 Fixed costs 38 250

$96 750 Assume all other information to be the same as in Exercise 13-17.

Required 1 Using the dual-rate method, what are the costs allocated to the Dark Chocolate Division and the Milk Chocolate Division when:

(a) variable costs are allocated using the budgeted rate per round-trip and actual round-trips used by each division and

(b) fixed costs are allocated based on the budgeted rate per round-trip and round-trips budgeted for each division?