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.

Expert Solution

ekkarill92 answered 9 months ago

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