Question & Answer: Set up algebraic equations in linear equation form for the service and production depar…..

Copy & Paste Photocopy Services has two service departments, S1 and S2, and two production departments, P1 and P2. The data for March were as follows:

Dept. Costs Provided to: S2 10% P1 40% 55% S1 P2 50% S1 S2 P1 P2 $90,000 60,000 360,000 520,000 20%

Required:

1) Set up algebraic equations in linear equation form for the service and production departments.

2) Using the reciprocal method determine the reciprocated cost for each service department and allocate the reciprocated costs of each service department to the production departments.

Show transcribed image textDept. Costs Provided to: S2 10% P1 40% 55% S1 P2 50% S1 S2 P1 P2 $90,000 60,000 360,000 520,000 20%

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