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) provides
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 | P | ||
| Op | --- | 35 | % | |
| P | 25 | % | --- | |
| Sold to customers | 75 | % | 65 | % |
In a typical period, the operation department (Op) spends $6,400 and the programming department (P) spends $4,400. Under the step method (Op first), what is the cost of the computer time and the computer programs for sale?
| Time | Programs | |||||
| A. | $ | 6,400 | $ | 4,400 | ||
| B. | $ | 4,800 | $ | 6,000 | ||
| C. | $ | 1,600 | $ | 9,200 | ||
| D. | $ | 4,160 | $ | 6,640 | ||
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Financial Accounting
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
3rd edition
978-0078025549
