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1. Using the single-rate method, allocate costs to the dark chocolate division and the milk chocolate division in these three ways. a. Calculate the budgeted
1. Using the single-rate method, allocate costs to the dark chocolate division and the milk chocolate division in these three ways. a. Calculate the budgeted rate per round-trip and allocate costs based on round-trips budgeted for each division. b. Calculate the budgeted rate per round-trip and allocate costs based on actual round-trips used by each division. C. Calculate the actual rate per round-trip and allocate costs based on actual round-trips used by each division. 2. Describe the advantages and disadvantages of using each of the three methods in requirement 1. Would you encourage Premium Candy Inc. to use one of these methods? Explain and indicate any assumptions you made. 1 2 Costs of truck fleet A Number of round-trips for dark chocolate 3 division (Palo Alto plant - Wisconsin) Number of round-trips for milk chocolate 4 division (Palo Alto plant - Louisiana) B C Actual Budgeted $ 114,000 $ 104,500 35 35 25 20
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