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Crayzon Corportion has two service departments, S1 and S2; and two production departments, P1 and P2. The data for April were as follows: Services
Crayzon Corportion 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 S1 Costs $100,000 S1 S2 P1 P2 20% 40% 50% $2 $80,000 10% 55% 25% Fixed Costs Pl $400,000 P2 $500,000 Required: a. Set up algebraic equations in linear form for each activity. Page 3 of 6 b. Determine total costs for each department by solving the equations from part (a) above using the reciprocal method.
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a Setting Up Algebraic Equations We can set up a system of linear equations to represent the activity costs in Crayzon CorporationLet S1Cost Total cos...Get Instant Access to Expert-Tailored Solutions
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