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

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Accounting

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Looking to compare!

Thanks,

The East Wind Company has a power plant designed and built toserve 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 fixedcosts for th year were $1,100,000.

Variable costs were budgeted as $10 per kilowatt-hour. Theactual total variable costs were
$2,200,000.

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

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