Paul€™s Valley Protection Service has three support departments (S1, S2, and S3) and three operating departments (P1, P2, and P3). The direct costs of each department are $30,000 for S1, $20,000 for S2, and $40,000 for S3. The proportions of service provided by each support department to the others are given in the following table.

REQUIRED
Using the reciprocal method, allocate the support department costs to the operatingdepartments.

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Support Departments S2 0.4 P1 0.2 0.2 Operating Departments P2 0.2 S1 S3 P3 S1 S2 S3 0.2 0.5 0.2 0.2 0.4