Advanced Computer Solutions, Inc In a Typical Period, the Operation Department (Op) Spends $4,500

question 40

Multiple Choice

Advanced Computer Solutions, Inc. has two main services: (1) time on a timeshared computer system, and (2) proprietary computer programs. The operation department (Op) provides computer time and the programming department (P) writes programs.
The percentage of each service used by each department for a typical period is:
$\begin{array}{c}\quad\quad\quad\quad\quad\quad\text { Supplied }\\\begin{array}{lll}\text { User } & \text { Op } & P \\\text { Op } & --- & 40 \% \\\text { P } & 30 \% & --- \\\text { Sold to customers } & 70 \% & 60 \%\end{array}\end{array}$
In a typical period, the operation department (Op) spends $4,500 and the programming department (P) spends $2,500.
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Under the reciprocal method what is the algebraic solution to the cost allocation problem?

• A) Op = $4,500 + 0.40P; P = $2,500 + 0.30Op.
• B) Op = $4,500 + 0.70P; P = $2,500 + 0.60Op.
• C) Op = $2,500 + 0.40P; P = $4,500 + 0.30Op.
• D) Op = $2,500 + 0.70P; P = $4,500 + 0.60Op.

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Definitions:

Collective Bargaining

The negotiation process between employers and a group of employees aimed at reaching agreements on wages, working conditions, benefits, and other aspects of workers' compensation and rights.

Formalize Agreement

The action of making an agreement official or legally binding through the proper channels and documentation.

Union Proposals

Suggestions or demands put forward by a labor union during negotiations with employers about terms of employment, wages, and workplace conditions.

Decertify

The process of revoking or removing the official recognition or certification of a role, organization, or activity, often related to unions.