Chocolat Inc decides to examine the effect of using the dual-rate method for allocating truck costs to each round-trip. (Click the icon to view the cost information for 2017) Chocolat Inc. is a producer of premium chocolate based in Palo Alto (Click the icon to view additional information ) For 2017, the trucking fleet had a practical capacity of 75 round-trips between the Palo Alto plant and the two suppliers. It recorded the following information: Click the icon to view the budget and actual data) Read the requirements Requirement 1. Using the dual-rate method, what are the costs allocated to the dark chocolate division and the milk chocolate division when (a) variable costs are allocated using the budgeted rate per round-trip and actual round-trips used by each division and when (b)fixed costs are allocated based on the budgeted rate per round-trip and round-trips budgeted for each division? Dark chocolate Milk chocolate Variable costs Fixed costs Total costs Requirement 2. From the viewpoint of the dark chocolate division, what are the effects of using the dual-rate method rather than the Single-rate method? The dual rate how the fixed indirect cost component is treated. By using budgeted trips made the dark chocolate division is by changes from its own budgeted usage or that of other divisions. When budgeted rates and actual trips are used for allocation the dark chocolate division is assigned amount for fixed costs as under the dual-rate method because it made number of trips as budgeted Budgeted Actual $ 187,500 $ 154,000 Costs of truck fleet Number of round-trips for dark chocolate division (Palo Alto plant - Wisconsin) Number of round-trips for milk chocolate division (Palo Alto plant - Louisiana) 40 40 35 30 i Data Table - X ble costs At the start of 2017, the budgeted costs were: costs Variable cost per round-trip $ 1.650 Fixed costs $ 63.750 costs irement 2 e-rate met Ets of The actual results for the 70 round-trips made in 2017 were: Sual rate Variable cost $63.000 91.000 using on is Fixed costs sions for allocat $ 154 000 Total Ked co use it mad Print Done rany num