Single-rate versus dual-rate cost allocation methods. (W. Crum, adapted) The Ontario Company has a power plant designed and built to serve its three factories. Data for 2007 are as follows:

Usage in Kilowatt-Hours Factory Budget Actual Mississauga 100,000 80,000 Cambridge 60,000 120,000 Burlington 40,000 40,000 Actual fixed costs of the power plant were $1.1 million in 2007; actual variable costs,

$2.2 million.

Required 1. Compute the amount of power costs that would be allocated to Cambridge using a single¬

rate method for both budgeted and actual usage.

Compute the amount of power costs that would be allocated to Cambridge using a dualte method for both budgeted and actual usage,