Grand Chocolate Inc. is a producer of premium chocolate based in Palo Alto. Grand Chocolate Inc. decides to examine the effect of using the dual-rate method for allocating truck costs to each round-trip. (Click the icon to view the cost information for 2020.) i (Click the icon to view additional information.) For 2020, the trucking fleet had a practical capacity of 45 round-trips between the Palo Alto plant and the two suppliers. It recorded the following information: Read the requirements. (Click the icon to view the budget and actual data.) Requirement 1. Using the dual-rate method, what are the costs 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 division and when (b) fixed costs are allocated based on the budgeted rate per round-trip and round-trips budgeted for each division? - X Dark chocolate Milk chocolate Data table Variable costs Fixed costs A B Total costs C Budgeted Actual $ 101,250 $80,000 X 2 Costs of truck fleet Data table Number of round-trips for dark chocolate division 3 (Palo Alto plant - Wisconsin) 30 30 Number of round-trips for milk chocolate division (Palo Alto plant - Louisiana) 15 10 4 At the start of 2020, the budgeted costs were Variable cost per round-trip Fixed costs $ 1,550 $ 31,500 The actual results for the 40 round-trips made in 2020 were Print Done Variable cost $ 59,000 21,000 Fixed costs $ 80,000 Total Check answer Help me solve this Ete Clear all
Grand Chocolate Inc. is a producer of premium chocolate based in Palo Alto. Grand Chocolate Inc. decides to examine the effect of using the dual-rate method for allocating truck costs to each round-trip. (Click the icon to view the cost information for 2020.) i (Click the icon to view additional information.) For 2020, the trucking fleet had a practical capacity of 45 round-trips between the Palo Alto plant and the two suppliers. It recorded the following information: Read the requirements. (Click the icon to view the budget and actual data.) Requirement 1. Using the dual-rate method, what are the costs 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 division and when (b) fixed costs are allocated based on the budgeted rate per round-trip and round-trips budgeted for each division? - X Dark chocolate Milk chocolate Data table Variable costs Fixed costs A B Total costs C Budgeted Actual $ 101,250 $80,000 X 2 Costs of truck fleet Data table Number of round-trips for dark chocolate division 3 (Palo Alto plant - Wisconsin) 30 30 Number of round-trips for milk chocolate division (Palo Alto plant - Louisiana) 15 10 4 At the start of 2020, the budgeted costs were Variable cost per round-trip Fixed costs $ 1,550 $ 31,500 The actual results for the 40 round-trips made in 2020 were Print Done Variable cost $ 59,000 21,000 Fixed costs $ 80,000 Total Check answer Help me solve this Ete Clear all
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College