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 S1 (Building occupancy) is:

A) S1= .10S3
B) S1 = $170,000 + 1.00S3
C) S1= $170,000 + .10S3
D) S1 = $170,000 + .90S2 + .10S3