Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Quantum Office Supplies Ltd. is an online supplier of office products. Two service departments provide support for Quantum's operating divisions: administration and technology services Budgeted
Quantum Office Supplies Ltd. is an online supplier of office products. Two service departments provide support for Quantum's operating divisions: administration and technology services Budgeted data for the coming quarter are provided below. Service departments Operating divisions Technology Corporate Consumer sales Administration services sales $281,000 $214,000 40 400 $190,000 $124,000 30 2,800 Operating costs 10 800 50 3,600 Employees Support hours provided Administration operating costs are allocated based on the number of employees in the department and technology services operating costs are allocated based on support hours provided. 4. Assume that Quantum uses the reciprocal method to allocate the operating costs. Where A - administration department and T technology services department, which of the following would be the correct equation to allocate the administration department operating costs (rounded to four decimals)? a) A $281,000 0.3077($214,000 0.1053T) b) A-$281,000 0.3333($214,000 0.1111A) c) A $281,000 0.1111($214,000 0.3333A) d) A $281,0000.1053($214,0000.30877T)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started