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? Dark chocolate Milk chocolate Variable costs Fixed costs Total costs - More info 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. Data table A B 1 Budgeted Actual $ 136,500 $ 123,000 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 25 20 Data table At the start of 2020, the budgeted costs were Variable cost per round-trip $ 1,350 Fixed costs $ 48,750 The actual results for the 60 round-trips made in 2020 were Variable cost $ 62,000 61,000 Fixed costs $ 123,000 Total