Premium Candy Inc; is a producer of premium chocolate based in Palo Alto. Premium Candy Inc. decides to examine the effect of using the dualrate method 0 [Click the icon to view additional information} for allocating truck 69519 to each round-trip. (Click the icon to view the cost information for 2020.) For 2020, the trucking eet had a practical capacity of 75 round-trips between the Palo Alto plant and the Mo suppliers. It recorded the following infcn'nation: Read the Equirements. a [Click the icon to view the budget and actual data.) Requirement 1. Using the dualrate method, what are the costs allocated to the dark chocolate division and the milk chocolate division when (a) variable costs are alocated using the budgeted rate per roundtrip and actual roundtrips Listed by each division and when {b} xed costs are allocated based on the budgeted rate per round-trip and round-trips budgeted for each division? Dark chocolate Milk chocolate Varlablo costs | l Fixed costs | i Total coats _i X More Info The company has a separate division for each of its two products: dark chocolate and milk chocolate. Premium Candy purchases ingredients from Wisconsin for its dark chocolate division and from Louisiana for its milk chocolate division. Both locations are the same distance from Premium Candy's Palo Alto plant. Premium Candy 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 DoneX Data Table A B C Budgeted Actual 2 Costs of truck fleet $ 176,250 $ 140,000 Number of round-trips for dark chocolate 3 division (Palo Alto plant - Wisconsin) 40 40 Number of round-trips for milk chocolate 4 division (Palo Alto plant - Louisiana) 35 30 Print DoneData Table X Data Table At the start of 2020, the budgeted costs were Variable cost per round-trip $ 1,600 Fixed costs $ 56,250 The actual results for the 70 round-trips made in 2020 were Variable cost $ 61,000 79,000 Fixed costs $ 140,000 Total Print Done- X Requirements 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 $ 94,000 $ 82,250 2. Budgeted rate per round-trip and allocate costs based on actual round-trips used by each division 94,000 70,500 3. Actual rate per round-trip and allocate costs based on actual round-trips used by each division 80,000 60,000 Print Done