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 P2 (final assembly) is:

A) P2 = .25S1 + .50S2 + .30S3
B) P2= $1,550,000 + .25P2 + .20P3 + .15S2 + .10S3
C) P2 = $1,550,000 + .30S1+ .50S2 + .20S3
D) P2 = $1,550,000 + .25S1 + .50S2 + .30S3