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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
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 10 Department Subassemblies Final assembly Marketing Building occupancy Research & development Supervision Direct Costs $567,000 792,000 302,000 102,000 137,800 62,000 Label P1 P2 P3 S1 S2 S3 Use of services by other departments is as follows Sub- assemblies 0.30 0.58 0.30 User Departments Building Marketing Occupancy 0.20 Final Assembly 0.20 0.50 0.30 Service Cost Center Building occupancy R&D Supervision R&D 0.20 Supervision 0.10 0.10 0.10 0.20 The equation for department P1 (subassemblies) is
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