The East Wind Company has a power plant designed and

The East Wind Company has a power plant designed and built to serve its three manufacturing plants. Data for 2010 are as follows:


Usage in Kilowatt-Hours

Usage in kiowatt-Hours

Factory Location

Budget

Actual

Pictou

100,000

80,000

Amherst

60,000

120,000

Yarmouth

40,000

40,000

Budgeted fixed costs for the year were $1,000,000. Actual fixed costs for the year were $1,100,000.

Variable costs were budgeted as $10 per kilowatt-hour. The actual total variable costs were $2,200,000.

1. Calculate the amount of power costs that would be allocated to each of the three locations using a single rate based on budgeted costs.

2. Calculate the amount of power costs that would be allocated to each of the three locations using a dual rate method based on budgeted costs for fixed and actual costs for variable.


Members

  • Access to 2 Million+ Textbook solutions
  • Ask any question from 24/7 available
    Tutors
$9.99
VIEW SOLUTION

OR

Non-Members

Get help from Accounting Tutors
Ask questions directly from Qualified Online Accounting Tutors.
Best for online homework assistance.