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Moccasin Corp  Total department costs for the support and producing departments are as follows: \text { Total department costs for the support and producing departments are as follows: }

Question 115

Essay

Moccasin Corp. has two support departments, A and B and two producing departments, P1 and P2. The distribution of services by the support departments is as follows:  Services Provided to  Services Frovided from ABP1P2A20%45%35%B20%30%50%\begin{array}{lllll}&&\text { Services Provided to }\\\text { Services Frovided from }&A&B&P1&P2\\A & - & 20 \% & 45 \% & 35 \% \\B & 20 \% & - & 30 \% & 50 \%\end{array}
 Total department costs for the support and producing departments are as follows: \text { Total department costs for the support and producing departments are as follows: }

A$90,000 B150,000P1850,000P2700,000\begin{array}{lr}A & \$ 90,000 \\\mathrm{~B} & 150,000 \\\mathrm{P} 1 & 850,000 \\\mathrm{P} 2 & 700,000\end{array}
Required:
Find the amount of total costs for P1 and P2 using the reciprocal method.

Correct Answer:

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A = $90,000 + 0.20B
A = $90,00...

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