The following information is available for a local organisation:

Service Departments Production Departments

A B $12$

Department costs $$14,000$ $$12,000$ $$19,000$ $$28,000$

Total labor hours $1,0002,5004,5003,000$

Square footage $1,0006,0008,0002,000$

Costs for service department A are allocated based on square footage, and costs for service

department B are allocated based on total labor hours.

Required:

Calculate using the Reciprocal Method using the simultaneous linear equation