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The Gammaro Trucking Company has one service department and two regional cperating departmenta. The budgoted cost behavior pattem of the service department is $750,000 monthly in fixed costs plus $0.75 por 1,000 ton-miles operated in the East and West. regions. (Ton-miles are the number of tons caried times the number of miles traveled.) The actual monthly costs of the service department are alocated using ton-mles operated as the cost-allocation base. Read the Requirement 1. Gammaro handed 500 milion ton-miles of traffic in April, halt h each opereing region. The actual costs of the serice department were exacty equal to those predicted by the budget for 500 milion ton-milos. Compute the costs thar would be alocated fo each operating region on an actual ton-tilos basis. (Round fates io three decimal placen) Requirement 2. Suppose the East rogion was plagued by strikes, so that the amount of treight handed was much lower than originaly anficipated. East moved only 160 milion ton-mles of treflic. The West region handed 240 millon ton-mles. The actual costs were exacly as budgeted for this lower level of activity. Compute the costs that would be allocated to East and West on an actual ton-mile basis. Note inat the lotal costs will be lower. (Round rites to three decimal places.) Requirement 3. Refer to the facts in mumber 1. Vanous ineffidencies caused the service departhent to incur toeal cests of 51,250,000. Compule the costs to be allocated to East and Weat. Are the allocations juatifec? if not, what inprovenent do you suggest? iRound rates to three decimal places.) Are the albeations juatufies? If not, what improvoment do you suggest? Such alocation seems because the operating departments to bes another desartiner's cost of ineficienoy If the alocations are unkestifed, select an improvernert: Using a predewermined or budgeted total amount goared to the vahour ievels of actiay of ne coerating departinents. Requirement 4. Refor to the facts in number 2. Assume that ansorted investment ourays for equpment and apace in the senice degartment peodetermined standsed tate per 1,000 ton-miles. Compule fie cobts is be alocme is each repion. What are the advanteges of this method over othor methods? Seleen the two advartages of this method over cher method inage. changes of the wervice separtment. charges of the survee depwitwert. The Gammaro Trucking Company has one service department and two regional cperating departmenta. The budgoted cost behavior pattem of the service department is $750,000 monthly in fixed costs plus $0.75 por 1,000 ton-miles operated in the East and West. regions. (Ton-miles are the number of tons caried times the number of miles traveled.) The actual monthly costs of the service department are alocated using ton-mles operated as the cost-allocation base. Read the Requirement 1. Gammaro handed 500 milion ton-miles of traffic in April, halt h each opereing region. The actual costs of the serice department were exacty equal to those predicted by the budget for 500 milion ton-milos. Compute the costs thar would be alocated fo each operating region on an actual ton-tilos basis. (Round fates io three decimal placen) Requirement 2. Suppose the East rogion was plagued by strikes, so that the amount of treight handed was much lower than originaly anficipated. East moved only 160 milion ton-mles of treflic. The West region handed 240 millon ton-mles. The actual costs were exacly as budgeted for this lower level of activity. Compute the costs that would be allocated to East and West on an actual ton-mile basis. Note inat the lotal costs will be lower. (Round rites to three decimal places.) Requirement 3. Refer to the facts in mumber 1. Vanous ineffidencies caused the service departhent to incur toeal cests of 51,250,000. Compule the costs to be allocated to East and Weat. Are the allocations juatifec? if not, what inprovenent do you suggest? iRound rates to three decimal places.) Are the albeations juatufies? If not, what improvoment do you suggest? Such alocation seems because the operating departments to bes another desartiner's cost of ineficienoy If the alocations are unkestifed, select an improvernert: Using a predewermined or budgeted total amount goared to the vahour ievels of actiay of ne coerating departinents. Requirement 4. Refor to the facts in number 2. Assume that ansorted investment ourays for equpment and apace in the senice degartment peodetermined standsed tate per 1,000 ton-miles. Compule fie cobts is be alocme is each repion. What are the advanteges of this method over othor methods? Seleen the two advartages of this method over cher method inage. changes of the wervice separtment. charges of the survee depwitwert