Question: Advanced Computer Solutions, Inc. has two main services: (1) time on a timeshared computer system, and (2) proprietary computer programs. The operation department (Op)
Advanced Computer Solutions, Inc. has two main services: (1) time on a timeshared computer system, and (2) proprietary computer programs. The operation department (Op) provides computer time and the programming department (P) writes programs. The percentage of each service used by each department for a typical period is: Supplied User Op Op P P 35% 25% Sold to customers 75% 65% In a typical period, the operation department (Op) spends $5,400 and the programming department (P) spends $3,400. Under the reciprocal method what is the algebraic solution to the cost allocation problem? Multiple Choice Op $3,400 +0.75P; P=$5,400 +0.650p. Op = $3,400 +0.35P; P = $5,400+ 0.250p. Op $5,400 +0.75P; P = $3,400 +0.650p. Op $5,400 +0.35P; P= $3,400 + 0.250p.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
