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Brains Corp has two service departments, S1 and S2, and two production departments, P1 and P2. The data for April were as follows: Services provided

Brains Corp has two service departments, S1 and S2, and two production departments, P1 and P2.

The data for April were as follows:

Services provided to:

Activity

Costs

S1

S2

P1

P2

S1

$100,000

20%

40%

50%

S2

$80,000

10%

55%

25%

Fixed Costs

P1

$400,000

P2

$500,000

Required:

a. Set up algebraic equations in linear form for each activity.

b. Determine total costs for each department by solving the equations from part (a) using the reciprocal method.

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