Reference no: EM132562655
Computer Complex, 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)
Question 1: The percentage of each service used by each department for a typical period is:
In a typical period, the operation department (Op) spends $4,500 and the programming department (P) spends $2,500.
Question 2: Under the reciprocal method what is the algebraic solution to the cost allocation problem?
Select one:
a.Op = 4,500 + .70 P; P = 2,500 + .60 Op.
b.Op = 2,500 + .70 P; P = 4,500 + .60 Op.
c.Op = 2,500 + .40 P; P = 4,500 + .30 Op.
d.Op = 4,500 + .40 P; P = 2,500 + .30 Op.