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Computer Complex, Inc. has two main services: (1) time on a timeshared computer system, and (2) proprietary computer programs. Computer time is provided by the
Computer Complex, Inc. has two main services: (1) time on a timeshared computer system, and (2) proprietary computer programs. Computer time is provided by the operation department (Op) and programs are written by the programming department (P) The percentage of each service used by each department for a typical period is User Op Supplied Op 40% 30% 70% 60% P. Sold to customers In a typical period, the operation department (Op) spends $4,500 and the programming department (P) spends $2,500 Under the reciprocal method what is the algebraic solution to the cost allocation problem? Op = 4,500 + 70 PP = 2,500 + 60 Op. Op = 2,500 + 70 P; P = 4,500 + 60 Op. Op = 2.500 + 40 P: P = 4,500 + 30 Op. Op = 4,500 + 40 P; P = 2,500 + 30 Op
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