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P Fact Pattern: Computer Complex offers two main supports: (1) time on a time-shared computer system and (2) proprietary computer programs, Computer time is provided
P Fact Pattern: Computer Complex offers two main supports: (1) time on a time-shared 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 support used by each department or included in the cost of sales to customers for a typical period is presented below. User Op Op 40% 30% Sold to customers 60% Total 100% 100% In a typical period, the operation department spends $4,500 and the programming department spends $2,500. If Computer Complex uses the step-down method and begins with the support department providing the greater value of support to the other support department, what is the cost of the computer time and the computer programs for sale? Time Programs 70% OA. $4,500 $2,500 B $2,700 $4,300 C. $1,350 $5,650 OD $3,150 $3,850 Directions: Select the best
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