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 Label P1 P2 Department Subassemblies Final assembly Marketing Building occupancy Research & development Supervision Direct Costs $552,000 777,000 287,000 87,000 122,000 47,000 P3 S1 S2 S3 Use of services by other departments is as follows. Sub- assemblies 0.30 0.50 0.20 Service Cost Center Building occupancy R&D Supervision User Departments Building Marketing Occupancy 0.15 Final Assembly 0.25 0.50 0.30 R&D 0.20 Supervision 0.10 --- --- 0.10 0.20 0.20 The equation for department P1 (subassemblies) is: 0.15 -- 0.20 0.19 Building occupancy R&D Supervision 0.30 0.50 0.20 0.25 0.50 0.30 0.10 0.20 0.28 The equation for department P1 (subassemblies) is: Multiple Choice P1 = $552,000+ 0.30S1 +0.5052 +0.2013 P1 = 0.30S1+0.5052 +0.2013 P1 = $552,000+ 0.25P2 +015P3 +0.2052 +01053 P1 = 0.30S1 +0.50S