TER ALLOCATION OF SUPPORT DEPARTMENT COSTS COMMON COSTS AND REVENUES The expected monthly costs for ping the power during the upt year are $26,000 3 Asume that a singh cost pod for the power plants What budget a wiwa ocated to sech manufacturing departmen and allocated based on practical capacity and the rate is calculated based s 2. Am the late method is used with spare cts are allocated on the basis of expected mon e for the vibe and fa practical capacity What budgeted amount will be allocated each manufacturing depa prefer the dual rate matha 16-17 Sleted ers and fuel and fed c data and its Chocolat inc Pab At The company has a pa ach of dark Chocolat Inc operates a feet of trucks a cost center that charges the divisions t thes of operating income For 2000, the trucking feet had a prac 50 round-trips between the Fale Ato plant and the straorded the following informat C Budgeted Actual $115,000 2 Costs of truckfeet $96.750 3 division (Palo Alto plant-Wisconsin) Number of round-tripe for dark chocolate 30 Number of round-trips for milk chocolate vision (Palo Alto plant-Louisiana 20 15 1. Using the single-rate method allocate costs to the dark chocolate division and the milk choc division in these three ways a Calculate the budgeted cate per round-trip and allocate costs based on round-trips budge each division Calculate the budgeted rate per round-trip and allocate costs based on actual round-trips used by each division 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 Would you encourage Chocolat Inc. to use one of these methods? Explain and indicate any tions you made 16-18 Dual-rate method, budgeted versus actual costs and quantities (continuation of 16-17 Ch decides to examine the effect of using the dual-rate method for alocating truck costs to each round-trip Acthe start of 2000 the budgeted costs were Variable cost per round-tip $1,350 Fixed costs $47.500 The actual results for the 45 round-trips made in 2020 wer Variable cost $5.500 Fixed costs 36.250 $96.750 Assume all other information to be the same as in Exercise 16-17 1. Using the dual-rate method, what are the costs affocated to the dark chocolate division and the m chocolate division when tal variable costs are allocated using the budgeted rate per round and actual round-trips used by each division and when bi fed 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 metho rather than the single-rate method?