Using the single-rate method, allocate costs to the dark chocolate division and

ID: 2378638 • Letter: U

Question

Using the single-rate method, allocate costs to the dark chocolate division and the milk chocolate division n these three ways:

Budgeted Actual

Cost of Truck Fleet $94,500 $76,000

# of round-trips for dark chocolate 30 30

# of round trips for milk chocolate 15 10

A. Calculate the budgeted rate per round trip and allocate costs based on round-trips budgeted for each division.

(The budgeted round rate per round-trip is ?

This translates t indirect costs allocated to the dark chocolate division for ?

And Mike chocolate?

B.) Calculat the budgeted ate per round-trip and allocate costs based on actual round trips used by each division.

(The budgeted round rate per round-trip is ?

This translates t indirect costs allocated to the dark chocolate division for ?

And Mike chocolate?

C.) Calculate the actual rate per round-trip and allocate costs based on actual round-trips used by each division.

(The budgeted round rate per round-trip is ?

This translates t indirect costs allocated to the dark chocolate division for ?

And Mike chocolate?

a.)

Budgeted indirect costs / Budgeted trips =$94,500/45= $2,100

Trucking fleet costs allocated to: Dark Chocolate Div Milk Chocolate Div Total

Budgeted rate per round-trip $2,100 $2,100 $2,100

Budgeted round-trips 30 15 45

$63,000 $31,500 $94,500

b.)

Budgeted indirect costs / Budgeted trips =$94,500/45= $2,100

Trucking fleet costs allocated to: Dark Chocolate Div Milk Chocolate Div Total

Budgeted rate per round-trip $2,100 $2,100 $2,100

Actual round-trips 30 10 40

$63,000 $21,000 $84,000

c.)

Actual indirect costs / Actual trips =$76,000/40= $1,900

Trucking fleet costs allocated to: Dark Chocolate Div Milk Chocolate Div Total

Actual rate per round-trip $1,900 $1,900 $1,900

Actual round-trips 30 10 40

$57,000 $19,000 $76,000

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