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Millie Enterprises is a retailer with two locations, Southside and Northside. It has three service departments, Personnel, Finance, and Building Occupancy. Costs in each of

Millie Enterprises is a retailer with two locations, Southside and Northside. It has three service departments, Personnel, Finance, and Building Occupancy. Costs in each of the service departments are Personnel = $202,500, Finance = $126,000, and Building Occupancy = $150,000. The following represents the usage of the service departments by Personnel, Finance, Building Occupancy, Southside, and Northside, respectively:

  • Personnel (employees): 0; 30; 15; 60; 30
  • Finance (transactions): 13,000; 0; 1,000; 60,000; 24,000
  • Building Occupancy (square feet): 15,000; 10,000; 0; 30,000; 45,000

What equation would you write to describe the costs in the Finance department under the reciprocal allocation method?

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