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Pre-Fabricators Inc manufacturers and assembles prefabricated concrete and green heart homes for the lower to middle income housing market. There are three support departments and

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Pre-Fabricators Inc manufacturers and assembles prefabricated concrete and green heart homes for the lower to middle income housing market. There are three support departments and two production departments. The budgeted costs and the normal activity levels for each department are given below. Support Departments Production Departments Design Fabrication Concrete Green Heart and Personnel assembly Overhead costs $150,000 $300,000 Square feet 200 3600 60,000 72,000 Number of 3 11 18 14 employees The allocation bases are as follows: Design and personnel - Number of Employees and Fabrication -Square feet. The production department allocates overhead cost to each house based on the budgeted costs for building each house. Required i. Set up algebraic equations in linear equation form for each activity, ii. Determine total costs for each department by solving the equations from part (1) using the reciprocal method

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