Please do not give solution in image format ? And Fast Answering Please And Explain Proper Step by Step. Support activity cost allocationJake's Gems mines and produces diamonds, rubies, and other gems. The gems are produced by way of the Mining and Cutting activities. These production activities aresupported by the Maintenance and Security activities. Security costs are allocated to the production activities based on asset value. Maintenance costs are normallyallocated based on machine hours. However, Maintenance costs typically correlate more with the number of service calls. Information regarding the activities is providedin the following table:Number of service callsMachine hoursAsset valueMaintenance1789$200,000$25,000Security2088$80,000$42,500Mining60182$120,000$160,000Cutting20176Measures that can possibly be used to allocate the maintenance costs.a. Number of service callsb. Asset valuec. Department costd. None of the above$480,000$95,000Department cost1. Is the process of allocating maintenance costs based on machine hours correct? Identify the measure than can possibly be used to allocate the maintenance costs.No2. Based on your response to part (1), determine the total costs allocated from each support activity to the other activities using the reciprocal services method and themost appropriate cost driver for Maintenance. 2. Based on your response to part (1), determine the total costs allocated from each support activity to the other activities using the reciprocal services method and tmost appropriate cost driver for Maintenance.MaintenanceDepartmentParticularsMaintenance cost12,500✔Maintenance cost allocationSecurity cost allocationProduction activities total costs190,000✔3. Assume Jake's Gems is considering cutting costs by switching to a simpler support activity cost allocation method. Determine the total costs allocated from eachsupport activity to the other activities.MiningDepartmentSecurityMiningDepartment DepartmentWhich of the following supports your answer?7,500 ✓ $ 22,500✔ $CuttingDepartment7,500 ✓18,750 X195,000 XCuttingDepartment18,750✔$ 6,250Security cost21,250 X 21,250 XProduction activities total cost 200,000 x122,500 xIs it viable for the company to choose the direct method of cost allocation?Yesa. The direct cost allocation method is too simple and it is not accurate.b. The difference between the direct cost allocation method and the reciprocal method is minimal and the direct method is easier.c. The reciprocal method of cost allocation is more accurate and easier than the direct method.d. None of the above.

Cost allocation can be defined as segregating the total cost into different departments or units as…

Jake's Gems mines and produces diamonds, rubies, and other gems. The gems are produced by way of the Mining and Cutting activities. These production activities are supported by the Maintenance and Security activities. Security costs are allocated to the production activities based on asset value. Maintenance costs are normally allocated based on machine hours. However, Maintenance costs typically correlate more with the number of service calls. Information regarding the activities is provided in the following table: Number of service calls Machine hours Asset value Maintenance 17 89 $200,000 $25,000 Security 20 88 $80,000 $42,500 Mining 60 182 $120,000 $160,000 Cutting 20 176 $480,000 $95,000 Department cost 1. Is the process of allocating maintenance costs based on machine hours correct? Identify the measure than can possibly be used to allocate the maintenance costs. No