1. support Activity Cost Allocstion Kizzle's Crepes Co, produces world famous crepes. The
company's crepes are produced via its Mixing and Cooking activities, which both rely on the
Janitorial and Maintenance activbes. Kizle's management knons the most practical driver of
Jantonal costs is square feec, but is uncertain whether to allocate Maintenance costs based on
assef vaiue of production equipment, number of service calls, or machine hours. Kizzless
management eitimates that the Cooking and Mixing activites each require about twice as much
space as the Maintenance activity. 1. Ldentify the buse for choosing the cost doiven a. The
compary needs to choese a driver that can be mesiured practically. b. The company needs to
choose the driver that matches the department activity c. The company needs to choose the
diviner that matches the support department function. d. All the above. Identify the driver which
cannot be used as cost driver for maintenance cost. a. Square feet. b. Number of service calls. c)
Machine hours. 3. Asset value of equipment. activities incur 16, 40, and 24 service calf,
respectwely, and that the Jaritorial and Maintenance costs of that period are 13,000 and 54,200,
respectively Determine the total cests aliocated frimen each supgert octuity to the other three
actwiles using the recoprocal services mathod. 3. The congary is considering changing from the
reoprocal service method to a simpier method. Why should the company continue with the
reciprocal service method? a. It is complex, but more accurate. b. It can be practiced if the
company has sufficient resources and capacity. c. The simpler cost allocation methods are less
accurate. e. All the above.