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Bruce Consulting Has Two Service Departments: S1 and S2 and Three

Question 45

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Bruce Consulting has two service departments: S1 and S2 and three production departments:
P1, P2, and P3. Data for a recent month follow:
Bruce Consulting has two service departments: S1 and S2 and three production departments: P1, P2, and P3. Data for a recent month follow:     Required: a) Determine the allocations to the production departments when the reciprocal method is used. b) Briefly describe why the reciprocal method is theoretically preferable to other methods of allocation.
Required:
a) Determine the allocations to the production departments when the reciprocal method is used. b) Briefly describe why the reciprocal method is theoretically preferable to other methods of allocation.

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(a)
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(b) While there is no difference ...

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