The Quebec City power plant that services all manufacturing departments of Eastern Engineering has a budget for the coming year. This budget has been expressed in the following monthly terms.

The Quebec City power plant that services all manufacturing departments of Eastern Engineering has a budget for the coming year. This budget has been expressed in the following monthly terms Manufacturing Department Needed at Practical Capacity Production Level (Kilowatt-Hours) 13,000 21,000 Average Expected Monthly Usage (Kilowatt-Hours) 10,000 9,000 Loretta Bently Melboum 14,000 32,000 10,000 11,000 Eastmoreland 80,000 40,000 Total 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? 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 Loretta Bently Melboum Eastmoreland Total Enter any number in the edit fields and then click Check