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Grand Chocolate Inc. is a producer of premium chocolate based in Palo Alto. Click the icon to view additional information.) For 2017, the trucking float
Grand Chocolate Inc. is a producer of premium chocolate based in Palo Alto. Click the icon to view additional information.) For 2017, the trucking float had a practical capacity of 65 round-trips between the Palo Alto plant and the two suppliers. It recorded the following information: Click the icon to Vuw the budget and actual data.) Read the requirements Requirement 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 The budgeted rate per round-trip in This translates to indirect costs allocated to the dark chocolate division for and milk chocolato division for Data Table Budgeted Actual $ 121,000 $ 100,000 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) 35 35 20 15 Print Done Requirements 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 Grand Chocolate Inc. to use one of these methods? Explain and indicate any assumptions you made. Print Done
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