The following is a system of simultaneous linear equations to allocate costs using the reciprocal method....
The following is a system of simultaneous linear equations to
allocate costs using the reciprocal method. Matrix algebra is
not required.
The following costs were incurred in three operating departments
and three service departments in Westmoreland Company.
| Department | Direct Costs | Label | ||
| Subassemblies | $ | 560,000 | P1 | |
| Final assembly | 785,000 | P2 | ||
| Marketing | 295,000 | P3 | ||
| Building occupancy | 95,000 | S1 | ||
| Research & development | 130,000 | S2 | ||
| Supervision | 55,000 | S3 | ||
Use of services by other departments is as follows.
| User Departments | ||||||
| Service Cost Center | Sub-assemblies | Final Assembly |
Marketing | Building Occupancy | R&D | Supervision |
| Building occupancy | 0.40 | 0.25 | 0.15 | --- | 0.10 | 0.10 |
| R&D | 0.50 | 0.50 | --- | --- | --- | --- |
| Supervision | 0.30 | 0.30 | 0.20 | 0.10 | 0.10 | --- |
The equation for department P1 (subassemblies) is:
-
P1 = $560,000 + 0.25P2 + 0.15P3 + 0.10S2 + 0.10S3.
-
P1 = $560,000 + 0.40S1 + 0.50S2 + 0.30S3.
-
P1 = 0.40S1 + 0.50S2 + 0.30S3.
-
P1 = 0.40S1 + 0.50S.
Homework Answers
Solution:
The equation for department P1 (subassemblies) is = $560,000 + 0.40S1 + 0.50S2 + 0.30S3
Hence 2nd option is correct.
Add Answer to:
The following is a system of simultaneous linear equations to
allocate costs using the reciprocal method....
The following is a system of simultaneous linear equations to allocate costs using the reciprocal method....
The following is a system of simultaneous linear equations to allocate costs using the reciprocal method. Matrix algebra is not required. The following costs were incurred in three operating departments and three service departments in Westmoreland Company. Department Direct Costs Label Subassemblies $ 561,000 P1 Final assembly 786,000 P2 Marketing 296,000 P3 Building occupancy 96,000 S1 Research & development 131,000 S2 Supervision 56,000 S3 Use of services by other departments is as follows. User Departments Service Cost Center Sub-assemblies...
The following is a system of simultaneous linear equations to allocate costs using the reciprocal method....
The following is a system of simultaneous linear equations to allocate costs using the reciprocal method. Matrix algebra is not required. The following costs were incurred in three operating departments and three service departments in Westmoreland Company. Label P2 Department Subassemblies Final assembly Marketing Building occupancy Research & development Supervision Direct Costs $552,000 777,000 287,000 87,000 122,000 47,000 Use of services by other departments is as follows. Sub- Service Cost Center assemblies Building occupancy 0.30 R&D 0.50 Supervision 0.20 Final...
The following is a system of simultaneous linear equations to allocate costs using the reciprocal method....
The following is a system of simultaneous linear equations to allocate costs using the reciprocal method. Matrix algebra is not required. The following costs were incurred in three operating departments and three service departments in Westmoreland Company. Department Subassemblies Final assembly Marketing Building occupancy Research & development Direct Costs Label $554, 000 P1 779, 000 289, 000 89, 000 P2 P3 s1 124, 000 49, 000 S2 Supervision S3 Use of services by other departments is as follows. User Departments...
The following set up is a system of simultaneous linear equations to allocate costs using the...
The following set up is a system of simultaneous linear equations to allocate costs using the reciprocal method. Matrix algebra is not required. The following costs were incurred in three operating departments and three service departments in Westmoreland Company. Department Direct Costs Label Subassemblies $ 550,000 P1 Final assembly 775,000 P2 Marketing 285,000 P3 Building occupancy 85,000 S1 Research & development 120,000 S2 Supervision 45,000 S3 Use of services by other departments is as follows. User Department Service Cost...
Using the reciprocal services method, which of the following equations represents the algebraic expressions for the...
Using the reciprocal services method, which of the following equations represents the algebraic expressions for the two equations needed to capture the total costs of a Janitorial Department (J) that includes not only $350,000 of direct 1 costs but also 30% of the Maintenance Department (M) cost and the Maintenance Department that includes not only $50,000 of direct costs but also 50% of the Janitorial Department? J = $350,000 - (0.30 x M) and M = $50,000 - (0.50 x...
The following is a system of simultaneous linear equations to allocate costs using the reciprocal method. Matrix algebra is not required. The following costs were incurred in three operating departments and three service departments in Westmoreland Company. Label P2 Department Subassemblies Final assembly Marketing Building occupancy Research & development Supervision Direct Costs $552,000 777,000 287,000 87,000 122,000 47,000 Use of services by other departments is as follows. Sub- Service Cost Center assemblies Building occupancy 0.30 R&D 0.50 Supervision 0.20 Final...
The following is a system of simultaneous linear equations to allocate costs using the reciprocal method. Matrix algebra is not required. The following costs were incurred in three operating departments and three service departments in Westmoreland Company. Department Subassemblies Final assembly Marketing Building occupancy Research & development Direct Costs Label $554, 000 P1 779, 000 289, 000 89, 000 P2 P3 s1 124, 000 49, 000 S2 Supervision S3 Use of services by other departments is as follows. User Departments...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago