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?© BrainMass Inc. brainmass.com December 16, 2022, 10:04 am ad1c9bdddf
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 ...
Allocation of Cost using both a variable and a fixed rate of allocation.