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Gray Enterprises Has Two Support Departments (S1 and S2)and Two \quad

Question 123

Essay

Gray Enterprises has two support departments (S1 and S2)and two producing departments (A and B).
The distribution of services by the support departments is as follows:
\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad  ServicesProvided to \text { ServicesProvided to }
 ServicesProvided from  S1 S2AB S 18%74%18% S 221%47%32%\begin{array}{ccccc}\text { ServicesProvided from } & \underline{\text { S1 }} & \underline{\mathbf{S 2}} & \underline{\mathbf{A}} & \underline{\mathbf{B}} \\\text { S } 1 & - & 8 \% & 74 \% & 18 \% \\\text { S } 2 & 21 \% & - & 47 \% & 32 \%\end{array} Total department costs for the support and producing departments are as follows:
S1558,000 S2 124,000 A 712,000 B 568,000\begin{array} { l l } \mathbf { S } 1 & 558,000 \\\text { S2 } & 124,000 \\\text { A } & 712,000 \\\text { B } & 568,000\end{array} Find the amount of total costs for A and B using the reciprocal method.

Correct Answer:

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\[\begin{array} { l }
\mathrm { S } 1 =...

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