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Campaign Printing Has Two Service Departments, S1 and S2, and Two

Question 137

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Campaign Printing has two service departments, S1 and S2, and two production departments, P1 and P2. The data for April were as follows:
Services provided to:
Campaign Printing has two service departments, S1 and S2, and two production departments, P1 and P2. The data for April were as follows: Services provided to:    Required: a. Set up algebraic equations in linear equation form for each department. b. 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. Required:
a. Set up algebraic equations in linear equation form for each department.
b. 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.

Correct Answer:

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a.
blured image b.
S1 = $90,000 + 0.20($60,000 + 0....

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