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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

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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 a practical capacity of 50 round-trips between the Palo Alto plant and the two suppliers. It recorded the following information: BClick the icon to view the budget and actual data.) 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.) 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 able costs d costs Budgeted Actual $ 115,000 $ 96,750 al costs 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) 30 30 20 15 Print Done At the start of 2017, the budgeted costs were: Variable cost per round-trip $ 1,350 Fixed costs $ 47,500 The actual results for the 45 round-trips made in 2017 were: Variable cost $ 58,500 38,250 Fixed costs Total $ 96,750 er in the edit fid Print Done sing arial ts ar ch Jon Dar 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? 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? Single-rate method data: Total costs Rate per round-trip Costs allocated by Dark chocolate Milk chocolate Budgeted Budgeted round-trips $ 69,000 $ 46,000 Actual round-trips Budgeted used 69,000 34,500 Actual round-trips Actual used 64,500 32,250 Print Done nber in the

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