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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solutions-manual-to-bhimani-et-al-management-and-cost-accounting-pearson-2012-1
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
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