Dual Rate Cost Allocation
Not what you're looking for?
A Company allocates telephone expenses based on a variable rate of $1 per phone call. It allocates the fixed monthly charge equally over its budgeted usage. B Division expected to make 300 telephone calls, but actually made 350. C Division expected to make 300 telephone calls, but actually made 250. Actual fixed costs for the month totaled $3,000. What are the amounts allocated to the two divisions using a dual rate of allocation?
Purchase this Solution
Solution Summary
Allocation of Cost using both a variable and a fixed rate of allocation.
Solution Preview
Cost allocation using a dual rate of allocation:
It is important to note that costs are allocated using budgeted rates that are applied to actual ...
Purchase this Solution
Free BrainMass Quizzes
Operations Management
This quiz tests a student's knowledge about Operations Management
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.