Crayzon Corportion has two service departments, S1 and S2; and two production departments, P1 and P2....

 

Transcribed Image Text:

Crayzon Corportion has two service departments, S1 and S2; and two production departments, P1 and P2. The data for April were as follows: Services provided to: Activity S1 Costs $100,000 S1 S2 P1 P2 20% 40% 50% $2 $80,000 10% 55% 25% Fixed Costs Pl $400,000 P2 $500,000 Required: a. Set up algebraic equations in linear form for each activity. Page 3 of 6 b. Determine total costs for each department by solving the equations from part (a) above using the reciprocal method. Crayzon Corportion has two service departments, S1 and S2; and two production departments, P1 and P2. The data for April were as follows: Services provided to: Activity S1 Costs $100,000 S1 S2 P1 P2 20% 40% 50% $2 $80,000 10% 55% 25% Fixed Costs Pl $400,000 P2 $500,000 Required: a. Set up algebraic equations in linear form for each activity. Page 3 of 6 b. Determine total costs for each department by solving the equations from part (a) above using the reciprocal method.

Answer rating: 100% (QA)

a Setting Up Algebraic Equations We can set up a system of linear equations to represent the activity costs in Crayzon CorporationLet S1Cost Total cos... View the full answer