(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.

(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...

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(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.

Answered Same Day Dec 24, 2021

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David answered on Dec 24 2021

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(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...

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