Climax Mines assigns service center costs to Revenue Centers M and N. The costs, cost drivers, and
Question:
Climax Mines assigns service center costs to Revenue Centers M and N. The costs, cost drivers, and statistics are as follows:
Assign service center costs to Mine M and Mine N using the physical measures method for Mine Administration and the ability to pay method for EquipmentMaintenance.
Transcribed Image Text:
Costs $500,000 Cost Drivers Mine Administration Equipment Maintenance $50,000 Revenue dollars Center Number of Mines Revenue Dollars Mine M Mine N Number of mines $3,600,000 $8,400,000
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MethodPhysical Measures and Ability to Pay Allocation Allocation Mine Equipment ...View the full answer
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