Hello, Looking to compare! Thanks, The East Wind Company has a power plant designed and built...

Hello,

Looking to compare!

Thanks,

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

Solutions

Expert Solution

ekkarill92 answered 2 months ago

Next > < Previous

Related Solutions

A power company operates three power generation plants. One is a wind plant, and the other...

A power company operates three power generation plants. One is a wind plant, and the other two consume a combination of Fuel 1 and Fuel 2, emitting carbon dioxide in the process. In addition, all three plants require maintenance. The amount of fuel consumed (in Mg), maintenance required (in person-hours), carbon dioxide (CO2) emitted (in Mg), and power generated (in MWh) per day of operation is as follows: Maintenance Fuel 1 Fuel 2 CO2 Power Plant Required Required Required Emitted...

Consolidated Power, a large electric power utility, has just built a modern nuclear power plant. This...

Consolidated Power, a large electric power utility, has just built a modern nuclear power plant. This plant discharges waste water that is allowed to flow into the Atlantic Ocean. The Environmental Protection Agency (EPA) has ordered that the waste water may not be excessively warm so that thermal pollution of the marine environment near the plant can be avoided. Because of this order, the waste water is allowed to cool in specially constructed ponds and is then released into the...

A neighborhood fuel cell power plant is to be designed for an electric power output of...

A neighborhood fuel cell power plant is to be designed for an electric power output of 2000 kW with liquid– water product. Estimate the flow rates of hydrogen and oxygen during peak power production, assuming an 80% efficient power conditioner is used to convert DC to AC power and the fuel cell efficiency is 55%. What is the plant heat rate?

Once a power plant is built, what sources of uncertainty can the plant owner face that...

Once a power plant is built, what sources of uncertainty can the plant owner face that might influence its annual profits? Organize your answer in terms of sources of uncertainty that can impact a) costs; and b) revenues.

Hello, Just want to compare. Thanks, Denver Cabinets Company (DCC) produces and sells specialty wooden cabinets....

Hello, Just want to compare. Thanks, Denver Cabinets Company (DCC) produces and sells specialty wooden cabinets. Production is machine-intensive. DCC’s variable costs are direct materials, variable machining costs and sales commissions. Robert Denver, the owner, is planning production for 2011. Salespeople are paid a 6% commission on each Colonial or Modern models sold and an 8% commission on each Distressed model sold. Fixed costs (administrative/selling and production) total $8,750,000. Annual capacity is 50,000 machine hours which is limited by the...

14. The Longview Power Plant near Morgantown was built asan Independent Power Producer (IPP). What is...

14. The Longview Power Plant near Morgantown was built asan Independent Power Producer (IPP). What is the basic business model of an IPP?

Hi please answer these questions with short description. please type the answers. thanks. wind power Provide...

Hi please answer these questions with short description. please type the answers. thanks. wind power Provide a short description of the following terms: Roughness Turbulence Rossby Circulation.

Hello, Just want to compare. Thanks, i-Covers Company manufactures designer cases for cell phones. Each cover...

Hello, Just want to compare. Thanks, i-Covers Company manufactures designer cases for cell phones. Each cover sells for $20.00. The cost currently assigned to each decal is $12.00. A competitor is introducing a new designer line of cases that will sell for $16.00 each. Management of i-Covers believes it must lower its selling price to $16.00 in order to compete in this highly cost-conscious market. Marketing believes that the new selling price will allow i-Covers to maintain the current sales...

Looking to compare, thanks. A) Allocate the two support departments' costs to the two operating departments...

Looking to compare, thanks. A) Allocate the two support departments' costs to the two operating departments using the following methods? Direct Method Step-down method (Allocate AS first) Step -down method (Allocate IS first) B) Compare and Explain differences in the support department costs allocated to each operating department? C) What approaches might be used to decide the sequence in which to allocate support departments when using the step-down method? Support Operating AS IS GOVT CORP Total Budgeted Overhead Costs Before...

1. Looking to compare, thanks. A) Allocate the two support departments' costs to the two operating...

1. Looking to compare, thanks. A) Allocate the two support departments' costs to the two operating departments using the following methods? Direct Method Step-down method (Allocate AS first) Step -down method (Allocate IS first) B) Compare and Explain differences in the support department costs allocated to each operating department? C) What approaches might be used to decide the sequence in which to allocate support departments when using the step-down method? Support Operating AS IS GOVT CORP Total Budgeted Overhead Costs...

Subjects