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I cant for the life of me figure this out. I did how the book shows and my answer is showing wrong. the answer that
I cant for the life of me figure this out. I did how the book shows and my answer is showing wrong. the answer that is shown in the second picture is an answer the book gives. Please help. This is passed due bc I havent been able to figure it out!
past. The different allocation methods did not yield large differences of cost allocation to the duction departments. Instructions 1. Determine which support department cost allocation method Blue Mountain Masterpieces would most likely use to allocate its support department costs to the production departments. 2. Determine the total costs allocated from each support department to each production depart- ment using the method you determined in part (1). Without doing calculations, consider and answer the following: If Blue Mountain Masterpieces decided to use square feet instead of asset value as the cost driver for security services, how would this change the allocation of Security Department costs 3. PR 19-2A Support activity cost allocation Obj. 3 Total cost of Jake's Gems mines and produces diamonds, rubies, and other gems. The gems are produced by Pepartment, way of the Mining and Cutting activities. These production activities are supported by the Mainte- $201,250 nance 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: le 17 20 88 Maintenance Security Mining Cutting Number of service calls 60 20 Machine hours 89 182 176 Asset value $200,000 $80,000 $120,000 $480,000 Department cost $25,000 $42,500 $160,000 $95,000 Instructions 1. Should Maintenance costs continue to be allocated based on machine hours? Why would a different driver be more appropriate? signment/take AssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Calculator Print Item ..... a. Number of service calls b. Asset value c. Department cost d. None of the above 2. Based on your response to part (1), determine the total costs allocated from each support activity to the other activities using the reciprocal services method and the most appropriate cost driver for Maintenance. Maintenance Security Mining Cutting Department Department Department Department Maintenance cost allocation Security cost allocation Production activities total costs $ 201,250 3. Assume Jake's Gems is considering cutting costs by switching to a simpler support activity cost allocation method. Determine the total costs allocated from each support activity to the other activities. Mining Cutting Particulars Department Department Maintenance cost Security cost Production activities total cost Is it viable for the company to choose the direct method of cost allocation? $ Check My Work Previous Next 11:29 AM a ) 2728/2020 past. The different allocation methods did not yield large differences of cost allocation to the duction departments. Instructions 1. Determine which support department cost allocation method Blue Mountain Masterpieces would most likely use to allocate its support department costs to the production departments. 2. Determine the total costs allocated from each support department to each production depart- ment using the method you determined in part (1). Without doing calculations, consider and answer the following: If Blue Mountain Masterpieces decided to use square feet instead of asset value as the cost driver for security services, how would this change the allocation of Security Department costs 3. PR 19-2A Support activity cost allocation Obj. 3 Total cost of Jake's Gems mines and produces diamonds, rubies, and other gems. The gems are produced by Pepartment, way of the Mining and Cutting activities. These production activities are supported by the Mainte- $201,250 nance 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: le 17 20 88 Maintenance Security Mining Cutting Number of service calls 60 20 Machine hours 89 182 176 Asset value $200,000 $80,000 $120,000 $480,000 Department cost $25,000 $42,500 $160,000 $95,000 Instructions 1. Should Maintenance costs continue to be allocated based on machine hours? Why would a different driver be more appropriate? signment/take AssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Calculator Print Item ..... a. Number of service calls b. Asset value c. Department cost d. None of the above 2. Based on your response to part (1), determine the total costs allocated from each support activity to the other activities using the reciprocal services method and the most appropriate cost driver for Maintenance. Maintenance Security Mining Cutting Department Department Department Department Maintenance cost allocation Security cost allocation Production activities total costs $ 201,250 3. Assume Jake's Gems is considering cutting costs by switching to a simpler support activity cost allocation method. Determine the total costs allocated from each support activity to the other activities. Mining Cutting Particulars Department Department Maintenance cost Security cost Production activities total cost Is it viable for the company to choose the direct method of cost allocation? $ Check My Work Previous Next 11:29 AM a ) 2728/2020Step by Step Solution
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