The

Kansas CityKansas City

power plant that services all manufacturing departments of

MidWestMidWest

Engineering has a budget for the coming year. This budget has been expressed in the following monthly terms:

Manufacturing	Needed at Practical Capacity			Average Expected Monthly
Department	Production Level (Kilowatt-Hours)			Usage (Kilowatt-Hours)
Livonia		13,000			16,000
Warren		29,000			12,000
Dearborn		12,000			18,000
Westland		6,000			4,000
Total		60,000			50,000

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 monthlyusage?

Budgeted rate per hour:

Livonia:

Warren:

Dearborn:

Westland:

Total: