2. Assume that Kizzle's management allocates Maintenance costs based on the number of service calls. Further assume that in a given period, 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 the other three activities using the reciprocal services method.Malntenance cost allocation:Janitorial:Mixing:$4Cooking:Janitorial cost allocation:Maintenance:Mixing:Cooking:3. The company is considering changing from the reciprocal service method to a simpler method. Why should the company continue with the reciprocalservice method?a. It is complex, but more accurate.b. It can be practiced if the company has sufficient resources and capacity.C. The simpler cost allocation methods are less accurate.d. All the above.

2)i)Maintenance cost allocation: Janitorial = 16/80 x 5,000 = 1,000 Mixing = 40/80 x 5,000 = 2,500…

ssume that Kizzle's management allocates Maintenance costs based on the number of servicê calls. Further assume Llla ng, 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 200, respectively. Determine the total costs allocated from each support activity to the other three activities using the reciprocal services method. Intenance cost allocation: mitorial: %24 zing: oking: nitorlal cost allocation: intenance: $4 King: oking: The company is considering changing from the reciprocal service method to a simpler method. Why should the company continue with the reciprocal vice method? It is complex, but more accurate. It can be practiced if the company has sufficient resources and capacity. The simpler cost allocation methods are less accurate. All the above.

ssume that Kizzle's management allocates Maintenance costs based on the number of servicê calls. Further assume Llla ng, 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 200, respectively. Determine the total costs allocated from each support activity to the other three activities using the reciprocal services method. Intenance cost allocation: mitorial: %24 zing: oking: nitorlal cost allocation: intenance: $4 King: oking: The company is considering changing from the reciprocal service method to a simpler method. Why should the company continue with the reciprocal vice method? It is complex, but more accurate. It can be practiced if the company has sufficient resources and capacity. The simpler cost allocation methods are less accurate. All the above.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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