a. J = ($500,000 × 0.20) + [($250,000 × 0.20) + J]
b. J = $500,000 – (0.20 × $250,000) – (0.20 × J)
c. J = $500,000 + [(0.20 ÷ $250,000) + (0.40 ÷ J)]
d. J = $500,000 + {0.20 × [$250,000 + (0.40 × J)]}
Answer:
The equation that represents the algebraic expressions for the two equations needed to capture the total costs of the Janitorial Department is:
d. J = $500,000 + {0.20 × [$250,000 + (0.40 × J)]}
Explanation:
a) Data and Calculations:
Direct costs Percent of Service Dept.
Janitorial Department (J) $500,000 20% of M
Maintenance Department (M) $250,000 40% of J
b) The reciprocal services method reapportions the costs of the service departments to other service departments using a system of simultaneous equations. With its complications, the reciprocal method is the most accurate and equitable method for apportioning service departments' costs to production departments.
