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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1 Cost Allocation Basis What is the basis for allocating costs between departments Is it based on th...
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
