Using the Reciprocal Services Method, Which of the Following Equations

question 161

Multiple Choice

Using the reciprocal services method, which of the following equations represents the algebraic expressions for the two equations needed to capture the total costs of a Janitorial Department (J) that includes not only $500,000 of direct costs but also 25% of the Maintenance Department (M) cost and the Maintenance Department that includes not only $450,000 of direct costs but also 30% of the Janitorial Department?

• A)J = $500,000 + (0.25 ÷ M) and M = $450,000 + (0.30 ÷ J)
• B)J = ($500,000 × 0.25) + M and M = ($450,000 × 0.20) + J
• C)J = $500,000 - (0.25 × M) and M = $450,000 - (0.20 × J)
• D)J = $500,000 + (0.25 × M) and M = $450,000 + (0.20 × J)

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