Single-rate versus dual-rate cost-allocation methods. (W. Crum, adapted) An Ontariobased company has a power plant that was designed and built to serve its three factories. Data for 2010 are as follows:

Actual fixed costs of the power plant were $1.1 million in 2010; actual variable costs were $2.2 million.
REQUIRED 1. Compute the amount of power costs that would be allocated to Cambridge using a singlerate method for both budgeted and actual usage.
2. Compute the amount of power costs that would be allocated to Cambridge using a dualrate method for both budgeted and actual usage.LO1

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Usage in Kilowatt-Hours Factory Budget Actual Mississauga 100,000 80,000 Cambridge 60,000 120,000 Burlington 40,000 40,000