The cost of producing electric power at the Emmons Company increased from $50,000 to $70,000 between January

Question:

The cost of producing electric power at the Emmons Company increased from $50,000 to $70,000 between January and February. The full amount of Electric Power Department cost is allocated to the various user departments in the company on the basis of actual usage.
(a) What factors may have caused the increase?
(b) Is this an effective way of handling this cost? If not, suggest a better way.