TB MC Qu. 11-61 (Algo) The following is a system of simultaneous... 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 Direct Costs Label Subassemblies $566,000 P1 Final assembly 791,000 P2 Marketing 301,000 P3 Building occupancy 101,000 S1 Research & development 136,000 S2 Supervision 61,000 53 Use of services by other departments is as follows. User Departments Sub- Final Service Cost Center assemblies Assembly Marketing Building Occupancy R&D Supervision Building occupancy 0.30 0.25 0.15 0.15 0.15 R&D 0.50 0.50 --- --- Supervision 0.20 0.30 0.20 0.20 0.10 The equation for department P1 (subassemblies) is: