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 S2 (Research and Development) is:

A) S2 = $240,000 + .15S1 + .65S2 + .20S3
B) S2 = .15S1 + .20S3
C) S2= $240,000 + .15S1 + .20S3
D) S2 = $240,000 + .40S1 + .60S3