65. The following set up is a system of simultaneous linear equations to allocate costs using the reciprocal method. Matrix algebra is not required. The following costs were incurred in three operating departments and three service departments in Reality Company. Department Direct Costs Label Subassemblies $550,000 P1 Final assembly 775,000 P2 Marketing 285,000 P3 Building occupancy 85,000 $1 Research & development 120,000 $2 Supervision 45,000 $3 Use of services by other departments is as follows. User Department Service Cost Sub- Final Market- Building Super- Center assemblies Assembly ing Occupancy R&D vision Bldg. occupancy 30 25 .20 .15 10 R&D 50 .50 Supervision 20 30 20 10 20 The equation for department S1 (building occupancy) is: A. S1 = .1083. B. S1 = $85,000 + 1.0053. C. S1 = $85,000 + .1053. D. S1 = $85,000 +.90S2 + .1053