Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed

Single-rate versus dual-rate allocation methods, support department

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Single-rate versus dual-rate allocation methods, support department. (20 min) Bases available (kilowatt-hours): Roskilde Køge Nysted Ålborg Total Practical capacity Expected monthly usage 10,000 8,000 20,000 9,000 12,000 7,000 8,000 6,000 50,000 30,000 1 ab Single-rate method based on practical capacity Total costs in pool = DKr 6,000 + DKr 9,000 = DKr 15,000 Practical capacity = 50,000 kilowatt-hours Allocation rate = DKr 15,000 ÷ 50,000 = DKr 0.30 per hour of capacity Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5 th Edition, Instructor’s Manual © Pearson Education Limited 2012 Download 1.72 Mb. Share with your friends: