Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
The following costs were incurred in three operating departments and three service departments in
Gagetown Molding Company:

The use of services by other departments is as follows:

The following questions refer to a system of simultaneous linear equations that allocate costs using the reciprocal method.
-The equation for department P1 (subassemblies) is

A) P1 = $1,100,000 + .25P2 + .20P3+ .15S2 + .10S3
B) P1 = $1,100,000 + .30S1 + .50S2 + .20S3
C) P1 = $.30S1 +.50S2 + .20S3
D) P1 = .30S1 + .50S