Chocolat Inc. decides to examine the effect of using the dual-rate method for allocating truck costs to each roundtrip. At the start of 2017, the budgeted costs were:

Variable cost per round-trip.......................$ 1,350

Fixed costs..........................................$47,500

The actual results for the 45 round-trips made in 2017 were:

Variable costs.....................................$58,500

Fixed costs..........................................38,250

.......................................................$96,750

Assume all other information to be the same as in Exercise 15-17.

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?

2. From the viewpoint of the dark chocolate division, what are the effects of using the dual-rate method rather than the single-rate method?