Three Allocation Methods (W. Crum) Linda Company constructed its own power plant capable of producing 6,000,000 kilowatt-hours of power per year.

It has three producing departments expected to consume power as follows:
Dept. 1—3,000,000 kwh; Dept. 2—2,000,000 kwh; Dept. 3—1,000,000 kwh.
During 19_5 actual consumption of power by the departments was as follows:
Dept. 1—1,000,000 kwh; Dept. 2—2,000,000 kwh; Dept. 3—1,000,000 kwh.
For 19_5, variable costs were ‘$900,000; fixed costs were $800,000.
State how much power-department cost should be allocated to Dept. 1, using three different methods of getting your answers, one of which should be the dual-rate method. Describe each answer carefully.