Crayzon Corportion has two service departments, S1 and S2; and two production departments, P1 and P2. The data for April were as follows: Services provided to: Activity Costs S1 S2 P1 P2 S1 $100,000...


Crayzon Corportion has two service departments, S1 and S2; and two production
departments, P1 and P2. The data for April were as follows:
Services provided to:
Activity Costs S1 S2 P1 P2
S1 $100,000 20% 40% 50%
S2 $80,000 10% 55% 25%
Fixed Costs
P1 $400,000
P2 $500,000
Required:
a. Set up algebraic equations in linear form for each activity.
Page 4 of 6
b. Determine total costs for each department by solving the equations from part
(a) above using the reciprocal method.



Jun 03, 2022
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