The Cincinnati power plant that services all manufacturing departments of Eastern Mountain Engineering has a budget for the coming year. This budget has been expressed in the following monthly terms. E(Click the icon to view the budgeted data.) The expected monthly costs for operating the power plant during the budget year are $20,000: $8,000 variable and $12,000 fixed. Read the requirements. 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). (a) Budgeted rate per hour 25 Loretta Bentley Melboum 13000 21000 14000 Eastmoreland 32000 80000 Total Data Table Manufacturing Department Loretta Bentley Melboum ete Needed at Practical Capacity Production Level (Kilowatt-Hours) 13,000 21,000 14,000 32,000 Average Expected Monthly Usage (Kilowatt-Hours) 10,000 9,000 10,000 11,000 40.000 ta ey Eastmoreland oul 80,000 Total mo 1 Print Done B L B 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? M E Print Done