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Craig Corp has two service departments, S1 and S2, and two production departments, Pl and P2. The data for May were as follows: Activity S1
Craig Corp has two service departments, S1 and S2, and two production departments, Pl and P2. The data for May were as follows: Activity S1 S2 Services provided to: S1 S2 P1 P2 20% 35% 55% 10% 50% 30% Costs $200,000 $140,000 Fixed Costs $450,000 $600,000 P1 P2 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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