Computer Complex,Inc

Multiple Choice

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) 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.Under the reciprocal method what is the algebraic solution to the cost allocation problem?

A) Op = 4,500 + .40 P;P = 2,500 + .30 Op.
B) Op = 4,500 + .70 P;P = 2,500 + .60 Op.
C) Op = 2,500 + .40 P;P = 4,500 + .30 Op.
D) Op = 2,500 + .70 P;P = 4,500 + .60 Op.