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StormLrd StormLrd
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6 years ago
Campaign Printing has two service departments, S1 and S2, and two production departments, P1 and P2. The data for April were as follows:

   Dept.      Provided to:             
From:   Costs   S1    S2    P1    P2
S1   $90,000      10%   40%    50%
S2   60,000   20%      55%    25%
P1   360,000
P2   520,000

Required:
a.   Set up algebraic equations in linear equation form for the service and production departments.
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.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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btpsandbtpsand
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6 years ago
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