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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
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 50 round-trips between the Palo Alto plant and the two suppliers. It recorded the following information: Chocolat Inc. decides to examine the effect of using the dual-rate method for allocating tru round-trip. EEE (Click the icon to view the cost information for 2017.) Read the requirements. (Click the icon to view the budget and actual data.) Data table 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 actua 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 Variable costs Fixed costs Total costs Help me solve this Milk chocolate Data table 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) $ Budgeted 115,000 $ 96,750 Actual 30 30 20 20 - 45 15 X Etext p More info The company has a separate division for each of its two products: dark chocolate and milk chocolate. Chocolat purchases ingredients from Wisconsin for its dark chocolate division and from Louisiana for its milk chocolate division. Both locations are the same distance from Chocolat's Palo Alto plant. Chocolat Inc. operates a fleet of trucks as a cost center that charges the divisions for variable costs (drivers and fuel) and fixed costs (vehicle depreciation, insurance, and registration fees) of operating the fleet. Each division is evaluated on the basis of its operating income. At the start of 2017, the budgeted costs were: Variable cost per round-trip $ Fixed costs 1,350 $ 47,500 The actual results for the 45 round-trips made in 2017 were: Variable cost Fixed costs Total $ 58,500 38,250 $ 96,750 Print Done Clear all
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