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2. Jackrabbit Jeeps has 2 support departments and 2 operating departments. Maintenance is allocated on square feet and Food Service is allocated on number of

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2. Jackrabbit Jeeps has 2 support departments and 2 operating departments. Maintenance is allocated on square feet and Food Service is allocated on number of employees. Support cost and allocation base information is provided below (15 pts.). a. Using the reciprocal method, determine the total costs of the Maintenance department that will be allocated to the other support and operating departments. Hint: Solve by using simultaneous equations. Round any decimals to the nearest 4 places (e.g. 0.123456 would be 0.1234 ) and the final dollar amount to the nearest whole dollar (12 pts.). b. Explain the significance of allocating support department costs. Include in your discussion how the allocation can impact the financial statements, provide incentives for efficient production, and impact manager's performance evaluations ( 3 pts.). Bonus: Using the reciprocal method, determine the total costs allocated to the Casting department (5 pts.) 1. Cholla Coffee produces coffee and sells bottles of its Mocha, Cappuccino, and Latte flavors of beverages. During the year, the joint costs of processing the coffee were $325,000. The cases of bottled coffee beverages and the per unit costs and prices are shown below ( 22 points): a. Using the physical output method, what is the dollar value of joint costs allocated to latte flavored beverages? Note: Please round to the nearest whole percent (e.g. 73.2\% =73% ) when performing your calculations. ( 8 pts.) b. Using the net realizable method, what is the dollar value of joint costs allocated to the mocha flavored beverages? Note: Please round to the nearest whole percent (e.g. 73.2\% =73% ) when performing your calculations. (14 pts.)

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