Assume that Kizzle's management allocates Maintenance costs based on the number of service calls. Further assume that in a given riod, the Janitorial, Mixing, and Cooking activities incur 16, 40, and 24 service calls, respectively, and that the Janitorial and aintenance costs of that period are $3,000 and $4,200, respectively. Determine the total costs allocated from each support activity to ne other three activities using the reciprocal services method. Maintenance cost allocation: Janitorial: 2$ Mixing: %24 Cooking: %$4 Janitorial cost allocation: Maintenance: %24 Mixing: Cooking: 3. The company is considering changing from the reciprocal service method to a simpler method. Why should the company continue with the reciprocal service method? a. It is complex, but more accurate.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Just question 2.

ミ
Not syncing
- Assume that Kizzle's management allocates Maintenance costs based on the number of service calls. Further assume that in a given
eriod, the Janitorial, Mixing, and Cooking activities incur 16, 40, and 24 service calls, respectively, and that the Janitorial and
Maintenance costs of that period are $3,000 and $4,200, respectively. Determine the total costs allocated from each support activity to
he other three activities using the reciprocal services method.
Maintenance cost allocation:
Janitorial:
Mixing:
%24
Cooking:
Janitorial cost allocation:
Maintenance:
Mixing:
Cooking:
%$4
3. The company is considering changing from the reciprocal service method to a simpler method. Why should the company continue with
the reciprocal service method?
a. It is complex, but more accurate.
Previous
Next
11:06 PM
14
11/16/2020
%24
%24
%24
%24
%24
II
Transcribed Image Text:ミ Not syncing - Assume that Kizzle's management allocates Maintenance costs based on the number of service calls. Further assume that in a given eriod, the Janitorial, Mixing, and Cooking activities incur 16, 40, and 24 service calls, respectively, and that the Janitorial and Maintenance costs of that period are $3,000 and $4,200, respectively. Determine the total costs allocated from each support activity to he other three activities using the reciprocal services method. Maintenance cost allocation: Janitorial: Mixing: %24 Cooking: Janitorial cost allocation: Maintenance: Mixing: Cooking: %$4 3. The company is considering changing from the reciprocal service method to a simpler method. Why should the company continue with the reciprocal service method? a. It is complex, but more accurate. Previous Next 11:06 PM 14 11/16/2020 %24 %24 %24 %24 %24 II
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education