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using the dual-rate method, what are the codts allocated to the dark chocolate division and the milk chocolate division when (a) variable costs are allocated
using the dual-rate method, what are the codts allocated to the dark chocolate division and the milk chocolate division when (a) variable costs are allocated using the budgeted rate per round-trip and actual round-trips used by each dovision and when (b) fixed costs are allocated based on the budgeted rate per round yrup and round trips budgeted for each division?
- More info The company has a separate division for each of its two productsdark chocolate and milk chocolate. Grand Chocolate purchases ingredients from Wisconsin for its dark chocolate division and from Louisiana for its milk chocolate division. Both locations are the same distance from Grand Chocolate's Palo Alto plant. Grand Chocolate Inc operates a fleet of trucks as a cost center that charges the divisions for variable costs (drivers and fuel) and fixed costs (vehicle depreciation, insurance, and registration fees) of operating the fleet. Each division is evaluated on the basis of its operating income. Print Done A B 1 Budgeted Actual $ 195,500 $ 156,000 2 Costs of truck fleet Number of round-trips for dark chocolate 3 division (Palo Alto plant - Wisconsin) Number of round-trips for milk chocolate 4 division (Palo Alto plant - Louisiana) 45 45 40 35 Print Done X budgete te divisio ision? Data table At the start of 2020, the budgeted costs were Variable cost per round-trip $ 1.600 Fixed costs $ 59,500 The actual results for the 80 round-trips made in 2020 were Variable cost $ 59,500 96 500 Fixed costs Total $ 156,000 Print Done Requirement 1. Using the dual-rate method, what are the costs allocated to the dark chocolate division and the milk chocolate divi are allocated based on the budgeted rate per round-trip and round-trips budgeted for each division? Dark chocolate Milk chocolate Variable costs Fixed costs Total costs Step by Step Solution
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