The following information is provided for a company which has two service departments, S1 and S2 and two production departments, P1 and P2:

S1 S2 P1 P2

Costs (TL) 10,000 15,000 125,000 150,000

Service given by S1 10% 45% 45%

Service given by S2 15% 40% 45%

Select the correct equation for use in allocating S1 costs under the reciprocal method.

Ltfen birini sein:

a. S1 = TL10,000 + 0.15(S2)

b. S1 = TL10,000 + 0.15(S2) + 0.40(P1) + 0.45(P2)

c. S1 = TL10,000 + 0.10(S2)

d. S1 = TL10,000

e. S1 = TL10,000 + 0.10(S2) + 0.45(P1) + 0.45(P2)