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Boswell Consulting Has Two Service Departments: S1 and S2 and Three

Question 142

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Boswell Consulting has two service departments: S1 and S2 and three production departments: P1,P2,and P3.Data for a recent month follow:Boswell Consulting has two service departments: S1 and S2 and three production departments: P1,P2,and P3.Data for a recent month follow:  Required: (a)Determine the allocations to the production departments when the reciprocal method is used.(b)Briefly describe why the reciprocal method is theoretically preferable to other methods of allocation.
Required:
(a)Determine the allocations to the production departments when the reciprocal method is used.(b)Briefly describe why the reciprocal method is theoretically preferable to other methods of allocation.

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