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:

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.