Calodaton eBook 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 Security Mining Cutting Maintenance Number of service calls 17 20 20 60 89 182 176 Machine hours $80,000 $300,000 Asset value $200,000 $300,000- $95,000 Department cost $25.000 $42.500 $160,000 1. Is the process of allocating maintenance costs based on machine hours cerrect? Identify the measure than can possibly be used to allocate the maintenance casts No Measures that can possibly be used to allocate the maintenance costs. a. Number of service cals b. Asset value C Department cost d None of the above 2. Based on your resoorse to pert (), determine the total.costs allocated from each suport activity to the other activtes using the reciprocal services method ane the mnost anpreoriate cest driver for Maintenance Cutting Security Mining Maintenance Department Department Department Department Maintenance cost allocation Security cont wtocation Previous Check Hy Wark Calculaton oBook driver for Maintenance Cutting Mining Security Maintenance Department Department Department Department Maintenance cost allocations Security cost alliocation Production activities total costs 3. Assume Jake's Gems is considering cutting costs by switching to a simpler support activity cost alocation method. Determine the total costs allocated from each support activity to the other activities Cutting Mining Department Department Particulars Maintenance cost Security cost Production activities total cost Is it viable for the company to choose the direct method of cost allocation? Yes Which of the following supports your answer? a. The direct cost allocation method is too simple and it is not accurate bThe dfference between the direct cost allocation method and the reciprocal method is minimal and the direct method is easier C The reciprocal method of cost ellocation is more accurate and easler than the direct method d. None of the above. Previous Check Hy Work Spve and Exit Submit Assignment for Gradng Email instrutoe All work seved Calodaton eBook 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 Security Mining Cutting Maintenance Number of service calls 17 20 20 60 89 182 176 Machine hours $80,000 $300,000 Asset value $200,000 $300,000- $95,000 Department cost $25.000 $42.500 $160,000 1. Is the process of allocating maintenance costs based on machine hours cerrect? Identify the measure than can possibly be used to allocate the maintenance casts No Measures that can possibly be used to allocate the maintenance costs. a. Number of service cals b. Asset value C Department cost d None of the above 2. Based on your resoorse to pert (), determine the total.costs allocated from each suport activity to the other activtes using the reciprocal services method ane the mnost anpreoriate cest driver for Maintenance Cutting Security Mining Maintenance Department Department Department Department Maintenance cost allocation Security cont wtocation Previous Check Hy Wark Calculaton oBook driver for Maintenance Cutting Mining Security Maintenance Department Department Department Department Maintenance cost allocations Security cost alliocation Production activities total costs 3. Assume Jake's Gems is considering cutting costs by switching to a simpler support activity cost alocation method. Determine the total costs allocated from each support activity to the other activities Cutting Mining Department Department Particulars Maintenance cost Security cost Production activities total cost Is it viable for the company to choose the direct method of cost allocation? Yes Which of the following supports your answer? a. The direct cost allocation method is too simple and it is not accurate bThe dfference between the direct cost allocation method and the reciprocal method is minimal and the direct method is easier C The reciprocal method of cost ellocation is more accurate and easler than the direct method d. None of the above. Previous Check Hy Work Spve and Exit Submit Assignment for Gradng Email instrutoe All work seved
