Craylon Corp has two service departments, S1 and S2, and two operating departments, O1 and O2.

The data for April were as follows:

		Services provided to:
Activity	Costs	S1	S2	O1	O2
S1	$100,000		10%	40%	50%
S2	$80,000	20%		55%	25%
	Fixed Costs
O1	$400,000
O2	$500,000

Determine total costs for each department using the reciprocal method both iteratively and algebraically.