Asked by Yessie Musah on Jun 03, 2024
Verified
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)
Algebraic Expressions
Mathematical phrases that can contain ordinary numbers, variables, and mathematical operations, but do not have an equality sign.
Janitorial Department
A division within a company or organization that is responsible for maintaining the cleanliness and orderliness of the premises.
Maintenance Department
The Maintenance Department is responsible for ensuring that all equipment and facilities are kept in good working condition through regular inspections, repairs, and preventive maintenance.
- Acknowledge the impact of cost drivers on the distribution of support department expenditures.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
D
Explanation :
The correct equations are J = $500,000 + (0.25 × M) and M = $450,000 + (0.30 × J), reflecting the direct costs plus a percentage of the other department's costs. However, the correct percentage for M should be 0.30 as per the question, not 0.20 as stated in option D. This indicates a slight error in the provided options, but D is the closest to the correct formulation based on the given information.
Learning Objectives
- Acknowledge the impact of cost drivers on the distribution of support department expenditures.