It recorded the following information: E (Click the icon to view the budget and actual data.) A (Click the icon to view additional information.) Read the requirements. Requirement 1. Using the single-rate method, allocate costs to the dark chocolate division and the milk chocolate division in these three ways. a. Calculate the budgeted rate per round-trip and allocate costs based on round-trips budgeted for each division. The budgeted rate per round-trip is This translates to indirect costs allocated to the dark chocolate division for and milk chocolate division for Data Table - X More Info A B C
It recorded the following information: E (Click the icon to view the budget and actual data.) A (Click the icon to view additional information.) Read the requirements. Requirement 1. Using the single-rate method, allocate costs to the dark chocolate division and the milk chocolate division in these three ways. a. Calculate the budgeted rate per round-trip and allocate costs based on round-trips budgeted for each division. The budgeted rate per round-trip is This translates to indirect costs allocated to the dark chocolate division for and milk chocolate division for Data Table - X More Info A B C
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Hi, can someone please help me with this question?
Transcribed Image Text:ChocoMix Inc. is a producer of premium chocolate based in Palo Alto.
For 2020, the trucking fleet had a practical capacity of 55 round-trips between the Palo Alto plant and the two suppliers.
It recorded the following information:
1 (Click the icon to view additional information.)
(Click the icon to view the budget and actual data.)
Read the requirements.
.....
Requirement 1. Using the single-rate method, allocate costs to the dark chocolate division and the milk chocolate division in these three ways.
a. Calculate the budgeted rate per round-trip and allocate costs based on round-trips budgeted for each division.
The budgeted rate per round-trip is
This translates to indirect costs allocated to the dark chocolate division for
and milk chocolate division for
Data Table
More Info
A
В
C
The company has a separate division for each of its two products: dark chocolate
and milk chocolate. ChocoMix purchases ingredients from Wisconsin for its dark
1
Budgeted
Actual
chocolate division and from Louisiana for its milk chocolate division. Both locations
2 Costs of truck fleet
$ 137,500 $ 107,500
are the same distance from ChocoMix's Palo Alto plant. ChocoMix 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.
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)
30
30
20
25
.....
Transcribed Image Text:E- books, an online book retailer, has two operating departments-corporate sales and consumer sales-and two
support departments-human resources and information systems.
The following data are available for September 2020:
(Click the icon to view the data.)
1 (Click the icon to view additional information.)
(Click the icon to view the direct allocation data.)
(Click the icon to view the step-down allocation data.)
Read the requirements.
IIO. Systems
TOtar
П
Corporate
COnSuImer
Costs incurred
$
75,000 $
230,000 $
992,000 $
481,000 $ 1,778,000
Allocation of HR costs
(100,000)
20,000
48,000
32,000
Allocation of Info. Systems costs
25,000
(250,000)
180,000
45,000
O $ 1,220,000 $
558,000 $ 1,778,000
Total budgeted costs of operating departments
This time, use repeated iterations. (Round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.)
Support Departments
Operating Departments
Reciprocal Method
HR
Info. Systems
Corporate
Consumer
Total
Budgeted overhead costs
before interdepartment cost allocations
75000
230000
992000
481000
1778000
First allocation of HR costs
-75000
15000
36000
24000
245000
First allocation of Info. Systems costs
24500
-245000
44100
Second allocation of HR costs
-24500
4900
7840
Second allocation of Info. Systems costs
490
-4900
882
.....
Expert Solution
Step 1
A budgeted cost or rate refers to the cost which is being evaluated on the basis of expected future factors such as expected revenues or the desired expected sales in the future.
Note: Attempting the first question only. kindly submit the question again mentioning which question needed answers.
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