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 $350,000 of direct costs but also 30% of the Maintenance Department (M) cost and the Maintenance Department that includes not only $50,000 of direct costs but also 50% of the Janitorial Department?
A)J = $350,000 + (0.30 ÷ M) and M = $50,000 + (0.50 ÷ J)
B)J = ($350,000 × 0.30) + M and M = ($50,000 × 0.50) + J
C)J = $350,000 - (0.30 × M) and M = $50,000 - (0.50 × J)
D)J = $350,000 + (0.30 × M) and M = $50,000 + (0.50 × J)

Question

Quizplus · Accepted Answer

The correct equations are D) J = $350,000 + (0.30 × M) and M = $50,000 + (0.50 × J) because they accurately represent the total costs of each department, including both direct costs and the specified percentages of the other department's costs.

Using the Reciprocal Services Method, Which of the Following Equations