The cost allocated to the divisions when variable costs are allocated using the budgeted rate per round trips and actual round trips used by each division. Given information: 2013, The variable cost rate per round trip is $1,350. The fixed cost rate per round trip is $47,000 per 50 round trips. The fixed cost rate per round trip is $950.

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Answer 1

Question

Chapter 15, Problem 15.18E

1.

(a)

To determine

The cost allocated to the divisions when variable costs are allocated using the budgeted rate per round trips and actual round trips used by each division.

Given information:

2013,

The variable cost rate per round trip is $1,350.

The fixed cost rate per round trip is $47,000 per 50 round trips.

The fixed cost rate per round trip is $950.

(b).

To determine

The cost allocated to the division when fixed costs are allocated using the budgeted rate per round trips and actual round trips used by each division.

Given information:

The variable cost rate per round trip is $1,350.

The fixed cost rate per round trip is $47,000 per 50 round trips.

The fixed cost rate per round trip is $950.

2.

To determine

To explain: The effects of using the dual-rate method rather than the single-rate method from the viewpoint of the DC division.

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Answer 2

Question

Chapter 15, Problem 15.18E

1.

(a)

To determine

The cost allocated to the divisions when variable costs are allocated using the budgeted rate per round trips and actual round trips used by each division.

Given information:

2013,

The variable cost rate per round trip is $1,350.

The fixed cost rate per round trip is $47,000 per 50 round trips.

The fixed cost rate per round trip is $950.

(b).

To determine

The cost allocated to the division when fixed costs are allocated using the budgeted rate per round trips and actual round trips used by each division.

Given information:

The variable cost rate per round trip is $1,350.

The fixed cost rate per round trip is $47,000 per 50 round trips.

The fixed cost rate per round trip is $950.

2.

To determine

To explain: The effects of using the dual-rate method rather than the single-rate method from the viewpoint of the DC division.

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 15, Problem 15.18E

1.

(a)

To determine

The cost allocated to the divisions when variable costs are allocated using the budgeted rate per round trips and actual round trips used by each division.

Given information:

2013,

The variable cost rate per round trip is $1,350.

The fixed cost rate per round trip is $47,000 per 50 round trips.

The fixed cost rate per round trip is $950.

(b).

To determine

The cost allocated to the division when fixed costs are allocated using the budgeted rate per round trips and actual round trips used by each division.

Given information:

The variable cost rate per round trip is $1,350.

The fixed cost rate per round trip is $47,000 per 50 round trips.

The fixed cost rate per round trip is $950.

2.

To determine

To explain: The effects of using the dual-rate method rather than the single-rate method from the viewpoint of the DC division.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 15, Problem 15.18E

1.

(a)

To determine

The cost allocated to the divisions when variable costs are allocated using the budgeted rate per round trips and actual round trips used by each division.

Given information:

2013,

The variable cost rate per round trip is $1,350.

The fixed cost rate per round trip is $47,000 per 50 round trips.

The fixed cost rate per round trip is $950.

(b).

To determine

The cost allocated to the division when fixed costs are allocated using the budgeted rate per round trips and actual round trips used by each division.

Given information:

The variable cost rate per round trip is $1,350.

The fixed cost rate per round trip is $47,000 per 50 round trips.

The fixed cost rate per round trip is $950.

2.

To determine

To explain: The effects of using the dual-rate method rather than the single-rate method from the viewpoint of the DC division.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 15, Problem 15.18E

1.

(a)

To determine

The cost allocated to the divisions when variable costs are allocated using the budgeted rate per round trips and actual round trips used by each division.

Given information:

2013,

The variable cost rate per round trip is $1,350.

The fixed cost rate per round trip is $47,000 per 50 round trips.

The fixed cost rate per round trip is $950.

(b).

To determine

The cost allocated to the division when fixed costs are allocated using the budgeted rate per round trips and actual round trips used by each division.

Given information:

The variable cost rate per round trip is $1,350.

The fixed cost rate per round trip is $47,000 per 50 round trips.

The fixed cost rate per round trip is $950.

2.

To determine

To explain: The effects of using the dual-rate method rather than the single-rate method from the viewpoint of the DC division.

Answer 6

Chapter 15, Problem 15.18E

1.

(a)

To determine

The cost allocated to the divisions when variable costs are allocated using the budgeted rate per round trips and actual round trips used by each division.

Given information:

2013,

The variable cost rate per round trip is $1,350.

The fixed cost rate per round trip is $47,000 per 50 round trips.

The fixed cost rate per round trip is $950.

Answer 7

Chapter 15, Problem 15.18E

1.

(a)

To determine

The cost allocated to the divisions when variable costs are allocated using the budgeted rate per round trips and actual round trips used by each division.

Given information:

2013,

The variable cost rate per round trip is $1,350.

The fixed cost rate per round trip is $47,000 per 50 round trips.

The fixed cost rate per round trip is $950.

Answer 8

(b).

To determine

The cost allocated to the division when fixed costs are allocated using the budgeted rate per round trips and actual round trips used by each division.

Given information:

The variable cost rate per round trip is $1,350.

The fixed cost rate per round trip is $47,000 per 50 round trips.

The fixed cost rate per round trip is $950.

Answer 9

(b).

To determine

The cost allocated to the division when fixed costs are allocated using the budgeted rate per round trips and actual round trips used by each division.

Given information:

The variable cost rate per round trip is $1,350.

The fixed cost rate per round trip is $47,000 per 50 round trips.

The fixed cost rate per round trip is $950.

Answer 10

2.

To determine

To explain: The effects of using the dual-rate method rather than the single-rate method from the viewpoint of the DC division.

Answer 11

2.

To determine

To explain: The effects of using the dual-rate method rather than the single-rate method from the viewpoint of the DC division.

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 15 - Prob. 15.1Q Ch. 15 - Describe how the dual-rate method is useful to...Ch. 15 - How do budgeted cost rates motivate the...Ch. 15 - Give examples of allocation bases used to allocate...Ch. 15 - Why might a manager prefer that budgeted rather...Ch. 15 - To ensure unbiased cost allocations, fixed costs...Ch. 15 - Prob. 15.7Q Ch. 15 - What is conceptually the most defensible method...Ch. 15 - Distinguish between two methods of allocating...Ch. 15 - Prob. 15.10Q

To explain: The effects of using the dual-rate method rather than the single-rate method from the viewpoint of the DC division.

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Chapter 15 Solutions