Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Advanced Computer Solutions, Inc. has two main services: (1) time on a timeshared computer system, and (2) proprietary computer programs. Computer time is provided by

Advanced Computer Solutions, 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: Supplied User Op P Op --- 40 % P 30 % --- Sold to customers 70 % 60 % 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 + .40 P; P = 2,500 + .30 Op. Op = 4,500 + .70 P; P = 2,500 + .60 Op. Op = 2,500 + .40 P; P = 4,500 + .30 Op. Op = 2,500 + .70 P; P = 4,500 + .60 Op.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions