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Craylon Corp has two service departments, S1 and S2, and two production departments, P1 and P2.

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Craylon Corp has two service departments, S1 and S2, and two production departments, P1 and P2.

Craylon Corp has two service departments, S1 and S2, and two production departments, P1 and P2.

The data for April were as follows:

Services provided to:
ActivityCostsS1S2P1P2
S1$100,00020%40%50%
S2$80,00010%55%25%
Fixed Costs
P1$400,000
P2$500,000

Required:
a.Set up algebraic equations in linear form for each activity.
b.Determine total costs for each department by solving the equations from part (a) using the reciprocal method.

Textbook

Cost Accounting: A Managerial Emphasis

Edition: 16^th

Authors: Horngren, Datar, Rajan

Read 76 times

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prime7105

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More solutions for this book are available here

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ccanez Author

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Appreciate the effort you put into answering, thank you!

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prime7105

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You're very welcome

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