Single-rate versus dual-rate cost-allocation methods. (W. Crum, adapted) (15-20 minutes) Alxenor, SA, has a power plant designed and built to serve its three factories. Data for 2001 are as follows:

REQUIRED 1. Calculate the amount of power costs that would be allocated to Iraklion using a single-rate method.
2. Calculate the amount of power costs that would be allocated to Iraklion using a dual-rate method. iy5

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USAGE IN KILOWATT-HOURS FACTORY BUDGET Kifisia 100,000 Iraklion 60,000 Chalandri 40,000 ACTUAL 80,000 120,000 40,000 Actual fixed costs of the power plant were EUR 1 million in 2001; actual variable costs, EUR 2 million.