Question $1,$ E$16-$

$16($similar to$)$

Part $2$ of $6$

The Kansas City power plant that services all manufacturing departments of MidWest Engineering has a budget for the coming year. This budget has been expressed in the following monthly terms:

$($Click the icon to view the budgeted data.$)$

The expected monthly costs for operating the power plant during the budget year are $$25,900$ : $$14,000$ variable and $$11,900$ fixed.

Read the requirements.

Requirement $1.$ Assume that a single cost pool is used for the power plant costs. What budgeted amounts will be allocated to each manufacturing department if $($a$)$ the rate is calculated based on practical capacity and costs are allocated based on practical capacity and $($b$)$ the rate is calculated based on expected monthly usage and costs are allocated based on expected monthly usage? $($Round the budgeted rate to the nearest cent.$)$

$($a$)$

$($b$)$

Budgeted rate per hour:

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