Oxide Company has two support departments (S1 and S2) and two producing departments (X and Y). Department S1 serves Departments S2, X, and Y in the following percentages, respectively: 10%, 35%, 55%. Department S2 serves Departments S1, X, and Y in the following percentages, respectively: 6%, 50%, and 44%. Direct department costs for S1, S2, X, and Y are $15,000, $8,000, $105,000, and $97,500, respectively. What is S1's cost equation?
A)S1 = $8,000 + 0.10S2
B)S1 = $8,000 + 0.06S2
C)S1 = $15,000 + 0.10S2
D)S1 = $15,000 + 0.06S2

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The Answer of Oxide Company has two support departments (S1 and S2) and two producing departments (X and Y). Department S1 serves Departments S2, X, and Y in the following percentages, respectively: 10%, 35%, 55%. Department S2 serves Departments S1, X, and Y in the following percentages, respectively: 6%, 50%, and 44%. Direct department costs for S1, S2, X, and Y are $15,000, $8,000, $105,000, and $97,500, respectively. What is S1's cost equation?
A)S1 = $8,000 + 0.10S2
B)S1 = $8,000 + 0.06S2
C)S1 = $15,000 + 0.10S2
D)S1 = $15,000 + 0.06S2

Oxide Company Has Two Support Departments (S1 and S2) and Two