15-19 Dual-rate method, budgeted versus actual costs, and practical capacity
versus actual quantities (continuation of Exercise 15-18). [Excel template] (LO
3) Chocolat Inc. decides to examine the effect of using the dual-rate method for
allocating truck costs to each round trip. At the start of the year, the budgeted
costs were
Variable cost per round trip
Fixed costs
$ 1,100
54,000
The actual results for the 55 round trips made in the year were
Variable costs
Fixed costs
$60,750
52,000
$112,750
Assume all other information to be the same as in Exercise 14-18.
Required
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?
