WOW Photocopy Services has two service departments, S1 and S2, and two production departments, P1 and P2. The data for March were as follows:

	Services provided to:
Activity	Costs	S1	S2	P1	P2
S1	$90,000		10%	40%	50%
S2	$60,000	20%		55%	25%
	Fixed Costs
P1	$360,000
P2	$520,000

Required:

1) Set up algebraic equations in linear equation form for the service and production departments. **Show All Calculations**

2) Using the reciprocal method determine the reciprocated cost for each service department and allocate the reciprocated costs of each service department to the production departments. **Show All Calculations**