Let us assume that Company X, using algebraic method, is a manufacturing company and it has both service and production departments as shown in the table below SERVICE DEPARTMENTS PRODUCTION DEPARTMENTS R&M Warehouse Machinery Assembly R&M 20% 60% 20% Warehouse 30% 40% 30% FOH ($) 60,000 40,000 100,000 300,000 Accordingly, the cost assigned from R&M to "Machinery Department approximately calculated as