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.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 19E
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- 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
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