Solution-What is the algebraic solution to cost allocation

What is the algebraic solution to cost allocation problem

Assignment Help Cost Accounting

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.

Reference no: EM132562655

Questions Cloud

How much was the joint operation net income after the bonus : How much was the joint operation's net income after the bonus to QQ? OO, PP, and QQ formed a joint operation to bankroll a series of cultural shows

What the profit of the operation for the month of april : What The profit (loss) of the operation for the month of April, 2011 is? Ranto and Santo formed a joint operation to acquire and sell a special type

Should blodgett reduce prices : The expected number of room-nights Blodgett could rent would increase by 10%. Should Blodgett reduce prices by 10%? Show your calculations.

What you learned from the literature review : What you learned from the literature review in your concluding remarks regarding your topic.The discussion and conclusion section should be 1-2 pages in length

What is the algebraic solution to cost allocation problem : Computer Complex, Inc. has two main services, Under the reciprocal method what is the algebraic solution to the cost allocation problem?

What gross profit margin that will appear in a product line : If Chocolate Delight is processed further, the gross profit margin that will appear in a product line income statement for Chocolate Delight would be?

Find the joint processing costs in the operation : Find The joint processing costs in the operation. Several candies could be sold at the split-off point or processed further and sold in a different form

Evaluate the performance of financial institutions : Evaluate the performance of financial institutions currently working in the market and future markets for reducing financial risk and evaluate the performance

What is the accounting department cost allocated : The RAH Manufacturing Company, What is the Accounting Department's cost allocated to Department B using the direct method?

User Account

All Pages

What is the algebraic solution to cost allocation problem

Reference no: EM132562655

Reference no: EM132562655

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT