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The Canterbury power plant services all manufacturing departments of Kakariki Engineering. The Canterbury plant's budget for next year has been expressed in the following monthly

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The Canterbury power plant services all manufacturing departments of Kakariki Engineering. The Canterbury plant's budget for next year has been expressed in the following monthly terms: Manufacturing Needed at practical Average expected department capacity production level monthly usage (Kw-h) (kw-h) Christchurch 13 000 10 000 Dunedin 22 000 8 000 Hokitika 13 000 11 000 Nelson 34 000 11 000 Total 82 000 40 000 The expected monthly costs for operating the power plant during the budget year are $21 000; $7 000 variable and $14 000 fixed. Assume that the dual-rate method is used with separate cost pools for the variable and fixed costs. Variable costs are allocated on the basis of expected monthly usage. Fixed costs are allocated on the basis of practical capacity. Compute the budgeted amounts allocated to Christchurch manufacturing

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