Question 2, E15-18 (simil. Homework: HW 7 Service department cost allocation 1 W Score Un of 10 points Ons: Save w mo Hop ho budin consum For more con Gods who leto Feet Requirements whether the whole www.debaseerd op donde Dark the Me Chocolat Vahe costs Tutto Data Table x to the and-trip the budgeted rate per round-trip and actus Budgeted Actual $ 104,500 $ 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 Chocolat Inc. decides to examine the effect of using the dual-rate 2017) ps between Requirements allocated to the e per round- budgeted rate pe 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 Rate per round-trip Costs allocated by Dark chocolate Milk chocolate Budgeted Budgeted round-trips $ 66,500 $ 38.000 Actual round-trips Budgeted used 66.500 28,500 Actual round-trips Actual used 70.000 30 000 Print Done Question 2, 16-18 Homework: HW 7 Service department cont allocation 1 W or on 10 OP001 Gave We w Bartholic ween the Palo Alto plant and the two suppliers. It Read the requirements x 1 More Info ed to il round- budgeted rate por round-trip and ach round-trip 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 X Data Table the budgeted rate per round-trip and actu to the d und trip Budgeted Actual $ 104,500 $ 100,000 35 35 - 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) 20 15 Print Done Data Table between the Palo Alto land and the fun stunnilines | gX Data Table cated to the dark chod per round trip and tour At the start of 2017, the budgeted costs were ted using the budgeted rate per round-trip and actual round-trips us Variable cost per round-trip S Fixed costs S 1.600 je sod The actual results for the 50 round-trips made in 2017 were Variable cost $ 58 500 Fixed costs 4/ 500 $ 100.000 Total Print Done es between Requirements budgete allocated to t e per round 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 Rate per round-trip Costs allocated by Dark chocolate Milk chocolate Budgeted Budgeted round-trips $ 66 500 $ 38.000 Actual round-trips Budgeted used 66.500 28.500 Actual round-trips Actual used 70 000 30.000 Print Done