Valdosta State University has two colleges, College of Business & College of Education. The two support departments are Physical Plant & the Library. The costs incurred in each of these departments are as follows:

College of Business (COBA) $90,000 Physical Plant $120,000

College of Education (COE) $70,000 Library $ 80,000

The revenues are as follows: COBA $326,000 and COE $284,000

The actual level of support is as follows:

Used by

PP LB COB COE

Supplied PP - 40% 35% 25%

by LB 20% - 50% 30%

____2 What is the cost allocated to the College of Education using the reciprocal method?

Question 25 options:

a)

$139,130.44

b)

$89,314.68

c)

$121,304.35

d)

$78,695.66