CHAPTER 15
ALLOCATION OF SUPPORT-DEPARTMENT COSTS,
COMMON COSTS, AND REVENUES
15-16 (20 min.) Single-rate versus dual-rate methods, support department.
Bases available (kilowatt hours):
Rockford
Peoria
Hammond
Kankakee
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
1a. Single-rate method based on practical capacity:
Total costs in pool = $6,000 + $9,000 = $15,000
Practical capacity = 50,000 kilowatt…
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