Accounting for Decision Making and Control 6th Edition by Jerold Zimmerman

Exercise 2

A bank has three service centers: EDP (electronic data processing), copying, and accounting. These service centers provide services to one another as well as to three operating divisions: A, B, and C. The distribution of each service center's output as well as its cost (in millions) is given in the accompanying table.
Fraction of Service Center Output Used
Required:
Using the reciprocal method, allocate the costs of the service centers to the three operating divisions.