When a company uses a dual-rate method, managers must select allocation bases for both variable and fixed-cost pools of the Material Management Division.

Variable costs are assigned based on the budgeted variable cost per hour of 30 TL for actual hours each department uses.

Fixed costs are assigned based on budgeted fixed costs per hour and the budgeted number of hours for each department.

Budgeted fees are charged from departments for each hour of the actual use of the central facility.

Given the budgeted usage of 800 hours for the Machining Department and 2,800 hours for the Assembly Department, the budgeted fixed-cost rate is 40 TL per hour.