The following set up is a system of simultaneous linear equations to allocate costs using the reciprocal

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Question:

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 Center	Sub-assemblies	Final Assembly	Marketing	Building Occupancy	R&D	Supervision
Bldg. occupancy	.30	.25	.20	---	.15	.10
R&D	.50	.50	---	---	---	---
Supervision	.20	.30	.20	.10	.20	---