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 Direct Costs $560,000 Label P1 785,000 P2 Marketing 295,000 P3 Building occupancy 95,000 $1 Research & development 130,000 52 Supervision 55,000 53 Use of services by other departments is as follows. User Departments Service Cost Center Sub- assemblies Final Building Assembly Marketing Occupancy Building occupancy 0.40 8.25 0.15 R&D 0.10 Supervision 0.10 R&D 0.50 0.50 --- Supervision 0.30 0.30 0.20 0.10 0.10 The equation for department S3 (supervision) is: Multiple Choice 53=0.1051. $3 $55,000 0.9051 0.1052. $3-$55,000 +0.1051. $3 $55,000+1.0051.