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Jamison Company Uses the Reciprocal Services Method to Allocate Support

Question 133

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Jamison Company uses the reciprocal services method to allocate support department costs and has gathered the following information: Jamison Company uses the reciprocal services method to allocate support department costs and has gathered the following information:   What are the correct equations to represent (a) the total Janitorial (J) costs, (b) the total Cafeteria (C) costs, and (c) the rewritten equation substituting C into J? What are the correct equations to represent (a) the total Janitorial (J) costs, (b) the total Cafeteria (C) costs, and (c) the rewritten equation substituting C into J?

Correct Answer:

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a.J = $450,000 + (20...

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