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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: User Op P Sold to customers Supplied Op 35% 25% 75% 65% In a typical period, the operation department (Op) spends $5,000 and the programming department (P) spends $3,000. Under the reciprocal method what is the algebraic solution to the cost allocation problem? Op = $3,000 + 0.75P; P = $5,000 + 0.650p. Op = $5,000 + 0.35P; P = $3,000 + 0.250p. = Op = $5,000 + 0.75P; P = $3,000+ 0.650p. Op = $3,000 + 0.35P; P = $5,000+ 0.250p
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