Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please do all the requirements Indulgence Inc, is a producor of premium chocolate based in Palo Allo. (Click the icon to view additional information.) For

please do all the requirements image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Indulgence Inc, is a producor of premium chocolate based in Palo Allo. (Click the icon to view additional information.) For 2020, the trucking foet had a praclical capacly of 70 rouns-trips between the Palo Alto plant and the two suppiers. IR recorded the following informaton: III (Cick the iogn to vios the bedget and actual data.) Read the teguicmeriat 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 budgoted rate per round-trib and allocase costs based on round-trips budgeted for each disision. The budgeted rate per round trip is This tranaiotes to indirect costs allocated to the dork chocolate division for and mik chocolate division for 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 capac Alto plant and the two supptiers. It recorded the f IiH. (Click the icon to view the budget and actual Read the requirements. \begin{tabular}{r|l|} \hline Requirement 1. Using & More info \\ a. Calculate the budget \\ \hline The budgeted rate per & Thecompanyhasaseparatedivisionforeachofitstwoproducts:darkchocolateandmllkchocolate.IndulgencepurchasesingredientsfromWisconsinforitsdarkchocolatedivisionandfromLouisianaforitsmilkchocolatedivision.BothlocationsarethesamedistancefromindulgencesPaloAltoplant.IndulgenceInc.operatesafleetoftrucksasacostcenterthatchargesthedivisionsforvariablecosts(driversandfuel)andfixedcosts(vehicledepreciation,insurance,andregistrationfees)ofoperatingthefleet.Eachdivisionisevaluatedonthebasisofitsoperatingincome. \\ \hline \end{tabular} lick the icon to view additional information.) For 2020, the trucking fleet had a practical cap Alto plant and the two suppliers. It recorded th Re ements. Data table these three ways. and milk choc ice Inc. is a producer of premium chocolate based in Palo Alto. ik the icon to view additional information.) For 2020, the trucking fleet had a practi Alto plant and the two suppliers. It recor IZA (Click the icon to view the budget a Read the requirements. Requirements Requirements ment 1. U rree ways. 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 Indulgence Inc. to use one of these methods? Explain and indicate any assumptions you made. Indulgence Inc, is a producor of premium chocolate based in Palo Allo. (Click the icon to view additional information.) For 2020, the trucking foet had a praclical capacly of 70 rouns-trips between the Palo Alto plant and the two suppiers. IR recorded the following informaton: III (Cick the iogn to vios the bedget and actual data.) Read the teguicmeriat 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 budgoted rate per round-trib and allocase costs based on round-trips budgeted for each disision. The budgeted rate per round trip is This tranaiotes to indirect costs allocated to the dork chocolate division for and mik chocolate division for 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 capac Alto plant and the two supptiers. It recorded the f IiH. (Click the icon to view the budget and actual Read the requirements. \begin{tabular}{r|l|} \hline Requirement 1. Using & More info \\ a. Calculate the budget \\ \hline The budgeted rate per & Thecompanyhasaseparatedivisionforeachofitstwoproducts:darkchocolateandmllkchocolate.IndulgencepurchasesingredientsfromWisconsinforitsdarkchocolatedivisionandfromLouisianaforitsmilkchocolatedivision.BothlocationsarethesamedistancefromindulgencesPaloAltoplant.IndulgenceInc.operatesafleetoftrucksasacostcenterthatchargesthedivisionsforvariablecosts(driversandfuel)andfixedcosts(vehicledepreciation,insurance,andregistrationfees)ofoperatingthefleet.Eachdivisionisevaluatedonthebasisofitsoperatingincome. \\ \hline \end{tabular} lick the icon to view additional information.) For 2020, the trucking fleet had a practical cap Alto plant and the two suppliers. It recorded th Re ements. Data table these three ways. and milk choc ice Inc. is a producer of premium chocolate based in Palo Alto. ik the icon to view additional information.) For 2020, the trucking fleet had a practi Alto plant and the two suppliers. It recor IZA (Click the icon to view the budget a Read the requirements. Requirements Requirements ment 1. U rree ways. 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 Indulgence Inc. to use one of these methods? Explain and indicate any assumptions you made

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions