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= Homework: Chapter 16 Allocation of Support Department Costs Question 1, E16-17 (similar to) Part 1 of 7 > HW Score: 0%, 0 of 12
= Homework: Chapter 16 Allocation of Support Department Costs Question 1, E16-17 (similar to) Part 1 of 7 > HW Score: 0%, 0 of 12 points O Points: 0 of 2 Save Chocolat Inc. is a producer of premium chocolate based in Palo Alto. (Click the icon to view additional information.) . For 2020, the trucking fleet had a practical capacity of 70 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 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 is This translates to indirect costs allocated to the dark chocolate division for and milk chocolate division for 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. Print Done Data table B 1 Budgeted Actual $ 150,500 $ 136,500 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 40 30 25 Print Done
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