$16-17.$Single$-$rate method, budgeted versus actual costs and quantities. Chocolat Inc. is a producer of premium chocolate based in Palo Alto. The company has a separate division for each of its two products: dark chocolate and milk chocolate. Chocolat purchases ingredients from Wisconsin for its dark chocolate division and from Louisiana for its milk chocolate division. Both locations are the same distance from Chocolat's Palo Alto plant.

Chocolat Inc. operates a fleet of trucks as a cost center that charges the divisions for variable costs $($drivers arid 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. For $2020,$ the trucking fleet had a practical capacity o $50$ round$-$trips between the Palo Alto plant and the two suppliers. It recorded the following information:

$\backslash$table$[[$co$,$Home,Insert,Page Layout,Formulas,Data Re$,$View$],[,,,$A$,,$B$,$C$],[1,,,,,$Budgeted,Actual$],[2,$Costs of truck fleet,$$115,000,$$$96,750],[3,$Number of round$-$trips for dark chocolate division $($Palo Alto plant$-$Wisconsin$),30,30],[4,$Number of round$-$trips for milk chocolate division $($Palo Alto plant$-$Louisiana$),20,15]]$

Using the single$-$rate method, allocate costs to the dark chocolate division and the milk chocola division in these three ways.

a$.$ Calculate the budgeted rate per round$-$trip and allocate costs based on round$-$trips budgeted for each division.

b$.$ Calculate the budgeted rate per round$-$trip and allocate costs based on actual round$-$trips used each division.

c$.$ Calculate the actual rate per round$-$trip and allocate costs based on actual round$-$trips used by each division.

Describe the advantages and disadvantages of using each of the three methods in requirement Would you encourage Chocolat Inc. to use one of these methods? Explain and indicate any assum tions you made.