SINGLE AND DUAL RATE METHODS (10 marks) Correl Company's power plant provides electricity for its two operating departments, A and B. The year 2015 budget for the power plant shows: $80,000 Budgeted fixed costs Budgeted variable costs per kilowatt hour (kwh) $0.15 Additional data for 2015: Budget (kwh Actual (kwh) 215,000 240,000 Department A Department B 160,000 195,000 Actual power plant costs: fixed $92,000, variable $88,000 Budgeted rates are used in the allocation of electricity cost. Required 0. Compute the power plant costs allocated to A and B using the single-rate method with budgeted usage as the allocation base. (4 marks) b. Compute the power plant costs allocated to A and B using the dual-rate method with actual usage as the allocation base for variable costs and budgeted usage as the allocation base for fixed costs. (4 marks) From the standpoint of Departments A and B, what are the two main benefits of the dual-rate method? (2 marks) C 2 A B 1