TB MC Qu. 11-63 (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 $564,000 P1 Final assembly 789,000 P2 Marketing 299,000 P3 Building occupancy 99,000 $1 Research & development 134,000 $2 Supervision 59,000 $3 Use of services by other departments is as follows. User Departments Sub- Service Cost Center assemblies Final Assembly Marketing Building Occupancy R&D Building occupancy 0.30 0.25 0.20 0.10 Supervision 0.15 R&D 0.50 0.50 Supervision 0.30 0.20 0.30 0.10 0.10 ---- The equation for department P3 (marketing) is: Multiple Choice O P3 $299,000+ 0.20S1+0.60S2 + 0.30S3. P3=$299,000+ 0.20S1+0.30S3. O P3 $299,000+ 0.20S1+0.30S2+0.60S3. P3= $299,000+ 0.50S1+0.50S3