(Algebraic method) The following chart indicates the percentage of support department services used by other departments. Service departments are designated S1, S2, and S3; operating departments are designated RP1 and RP2.
|
SERVICES USED |
|||||
|
Department |
S1 |
S2 |
S3 |
RP1 |
RP2 |
|
S1 |
n/a |
10% |
20% |
30% |
40% |
|
S2 |
40% |
n/a |
30 |
20 |
10 |
|
S3 |
20 |
30 |
n/a |
40 |
10 |
Direct costs of the period were $170,000, $360,000, and $600,000 for S1, S2, and S3,respectively. Allocate the support department costs to the operating departments using the algebraic method.