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help with part B Campaign Printing has two service departments, S1 and S2, and two production departments, P1 and P2. The data for April were
help with part B Campaign Printing has two service departments, S1 and S2, and two production departments, P1 and P2. The data for April were as follows: Services provided to: Dept. Activity Costs S1 S2 P1 P2 S1 $90,000 10% 40% 50% S2 60,000 20% 55% 25% P1 360,000 P2 520,000 Required: a. Set up algebraic equations in linear equation form for each service department. b. Using the reciprocal method determine the reciprocated cost for each service department and allocate the reciprocated costs of each service department to the production departments, Ace Products sells its products for $22 each. Unit manufacturing costs are: direct materials, $4.00; direct manufacturing labour, $6.00; and variable manufacturing overhead, $3.00. Total fixed manufacturing overhead costs are $60,000 and marketing expenses are $2.00 per unit plus $20,000 per year. The current production level is 25,000 units although only 20,000 units are anticipated to be sold. Required: What would be the operating income using absorption costing. b. What would be the operating income using variable costing. a
help with part B
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