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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 518,000 59.000 variable and $9,000 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 in 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), (1) Budgeted rato per hour Livonia Warren Dearbor Westland Requirement 2. Assume the dual-rate method is used with separate cost pools for the variable and allocated on the basis of expected monthly usage. Fixed costs are allocated on the basis of practical capacity. What budgeted amounts will be allocated to each manufacturing department? Why might you prefer the dual-rate method? Begin by calculating the budgeted amounts that will be allocated to each manufacturing department Variable Fixed Total Budgeted rate per hour Livonia Warron Dearbom Westland Total Why might you prefer the dual-rate method? The dual rate allows allocation of the power department costs. The dual rate permits the use of Manufacturing Department Average Expected Monthly Usage (Kilowatt-Hours) 16,000 Livonia Warren Dearbom Needed at Practical Capacity Production Level (Kilowatt-Hours) 13,000 29,000 12,000 6,000 60,000 12,000 18,000 4,000 Westland 50.000 Total Print Done

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