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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
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 Subassemblies Final assembly Marketing Building occupancy Research & development Supervision Direct Costs $568,000 793,000 303,000 103,000 138,000 63,000 Label P1 P2 P3 S1 S2 S3 Use of services by other departments is as follows. Sub- assemblies 0.30 0.50 0.20 User Departments Building Marketing Occupancy 0.20 Final Assembly 0.25 0.50 0.30 Service Cost Center Building occupancy R&D Supervision RED 0.15 Supervision 0.10 0.20 0.20 0.10 The equation for department 53 (supervision) is: Marketing 0.20 Occupancy R&D 0.15 Service Cost Center Building occupancy R&D Supervision assemblies 0.30 0.50 0.20 Assembly 0.25 0.50 0.30 Supervision 0.10 0.20 0.20 0.10 The equation for department 53 (supervision) is: Multiple Choice S301051 $3.563.000.00051 +01052 53-563,000 1,0051 S3-563.00001051
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