Department P2

The following 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 Westmoreland Company Department Subassemblies Final assembly Marketing Building occupancy Research & development Supervision Direct Costs $554,000 779,000 289.000 89,000 124,000 49,000 Label P1 P2 P3 si 52 S3 Use of services by other departments is as follows Sub- assemblies @.30 0.50 0.30 User Departments Building Marketing Occupancy 0.20 Final Assembly 0.20 0.50 0.30 Service Cost Center Building occupancy R&D Supervision R&D 0.20 Supervision 0.10 0.20 0.10 @.10 The equation for department P2 (final assembly) is