The Chicago power plant that services all manufacturing departments of MidWest Engineering has a budget for the coming year. This budget has been expressed in the following monthly terms: (Click the icon to view the budgeted data.) The expected monthly costs for operating the power plant during the budget year are $10,400: $2,400 variable and $8,000 fixed. Requirement 1. Assume that a single cost pool is used for the power plant costs. What budgeted amounts will be allocated to each manufacturing department if (a) the rate is calculated based on practical capacity and costs are allocated based on practical capacity and (b) the rate is calculated based on expected monthly usage and costs are allocated based on expected monthly usage? (Round the budgeted rate to the nearest cent.) Budgeted rate per hour: Livonia Warren Dearborn Westland Total (a) Data table Manufacturing Department Needed at Practical Capacity Production Level (Kilowatt-Hours) Average Expected Monthly Usage (Kilowatt-Hours) Livonia 10,000 6,000 Warren 15,000 7,000 Dearborn 12,000 3,000 3,000 4,000 Westland 40,000 20,000 Total - Requirements 1. Assume that a single cost pool is used for the power plant costs. What budgeted amounts will be allocated to each manufacturing department if (a) the rate is calculated based on practical capacity and costs are allocated based on practical capacity and (b) the rate is calculated based on expected monthly usage and costs are allocated based on expected monthly usage? 2. Assume 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. What budgeted amounts will be allocated to each manufacturing department? Why might you prefer the dual-rate method? Print Done