Indulgence 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 55 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.) Indulgence 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.) Read the requirements. Data table A 1 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) Print Done B Budgeted Actual $ 129,250 $ 100,000 30 30 25 20 20 - More info Data table The company has a separate division for each of its two products: dark chocolate and milk chocolate. Indulgence purchases ingredients from Wisconsin for its dark chocolate division and from Louisiana for its milk chocolate division. Both locations are the same distance from Indulgence's Palo Alto plant. Indulgence 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. Requirements At the start of 2020, the budgeted costs were Variable cost per round-trip Fixed costs $ 1,600 $ 41,250 The actual results for the 50 round-trips made in 2020 were Variable cost ked costs - tal $ 63,000 37,000 $ 100,000 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? 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: 2. Total costs Single-rate allocation methods - Rate per round-trip and cost allocation method Dark chocolate Milk chocolate 1. Budgeted rate per round-trip and allocate costs based on round-trips budgeted for each division 2. Budgeted rate per round-trip and allocate costs based on actual round-trips used by each division $ 70,500 $ 58,750 70,500 47,000 3. Actual rate per round-trip and allocate costs based on actual round-trips used by each division 60,000 40,000 Print Done - nd when (b) fixed costs are allocated based on the budgeted rate per round-trip and 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? Variable costs Fixed costs Total costs Dark chocolate Milk chocolate