ChocoMix Inc. is a producer of premium chocolate based in Palo Alto. i (Click the icon to view additional information.) ChocoMix 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 2020.) For 2020, the trucking fleet had a practical capacity of 65 round-trips between the Palo Alto plant and the two suppliers. It recorded the following information: E (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 - X Data table Data table Variable costs Fixed costs At the start of 2020. the budgeted costs were B Total costs $ 1 1,600 Budgeted Actual $ 123,500 $ 114,000 Variable cost per round-trip Fixed costs $ 19,500 - Requirements 2 Costs of truck fleet 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) 40 401 The actual results for the 60 round-trips made in 2020 were 25 20 Variable cost $ 63.000 51,000 Fixed costs $ 114,000 Total More info Print Done 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 Single-rate allocation methods - Rate per round-trip Dark Milk and cost allocation method chocolate chocolate 1. Budgeted rate per round-trip and allocate costs based on round-trips budgeted for each division $ 76,000 $ 47,500 2. Budgeted rate per round-trip and allocate costs based on actual round-trips used by each division 76.000 38,000 3. Actual rate per round-trip and allocate costs based on actual round-trips used by each division 76,000 38,000 The company has a separate division for each of its two products: dark chocolate and milk chocolate. ChocoMix purchases ingredients from Wisconsin for its dark chocolate division and from Louisiana for its milk chocolate division. Both locations are the same distance from ChocoMix's Palo Alto plant. ChocoMix 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. Print Done Print Done