TB MC Qu. 11-66 (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 Subassemblies $563,000 Label P1 Final assembly 788,000 P2 Marketing 298,000 P3 Building occupancy 98,000 $1 Research & development 133,000 52 Supervision 58,000 S3 Use of services by other departments is as follows. User Departments Sub- Service Cost Center assemblies Final Assembly Marketing Building Occupancy Building occupancy 0.40 0.20 0.15 R&D 0.15 Supervision 0.10 R&D 0.50 0.50 Supervision 0.30 0.30 0.10 0.20 0.10 The equation for department S3 (supervision) is: