How would single-rate allocation differ from dual-rate

Assignment Help Financial Management

Reference no: EM13918089

Jug City, Inc. has two divisions within its one central plant: Forming Division and the Kilning Division. The following data apply to the coming budget year:

Budgeted costs of operating the plant for 2,000 to 3,000 hours:

Fixed operating costs per year 250,000

Variable operating costs per year $400 per hour

Budgeted long-run usage per year:

Forming Division 2,000 hours

Kilning Division 1,000 hours

Practical capacity 4,000 hours

Assume that practical capacity is used to calculate the allocation rates. Forming Division had actual usage for the year at 1,500 hours and the Kilning Division had 800 hours.

Requirements:

a) If dual-rate allocation method is used, what amount will be allocated to the both divisions?

b) Within this scenario, how would single-rate allocation differ from dual-rate?

Reference no: EM13918089

Questions Cloud

Find the terminal stock price using benchmark pe ratio : In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the “terminal” stock price using a benchmark PE ratio. What are the projected dividends for each of ..

Why are assessments important to employee development : What is the role of coaching in an effective employee development plan? Why would managers avoid coaching their employees? Why are assessments important to employee development?

Dangers of substance abuse : You are presenting to a group of high school students on the dangers of substance abuse. Create a 10- to 15-slide Microsoft® PowerPoint® presentation on substance-related disorders that includes the following:

A sole proprietorship statement : Like a sole proprietorship statement of owner's equity, the statement of partners' equity will show all the partners' capital accounts as one account.

How would single-rate allocation differ from dual-rate : Jug City, Inc. has two divisions within its one central plant: Forming Division and the Kilning Division. The following data apply to the coming budget year: If dual-rate allocation method is used, what amount will be allocated to the both divisions?..

Segmentation and target market paper : Write a white paper on a company of your choice and discuss the market segmentation within that industry along with the target market for the company and the selection process for that target market.

Being a barrier to hostile takeovers : Which of the following is NOT normally regarded as being a barrier to hostile takeovers?

Conducting criminal justice research : How can not knowing the proper terminology affect you as you conduct criminal justice research?

Evaluate the models and methods used to support coaching : Evaluate the models and methods used to support coaching and mentoring and justify an appropriate design for your talent development programme.

User Account

All Pages