The following chart indicates the percentage of support department services used by other departments. Service departments are designated S1, S2, and S3; operating departments are designated RP1 and RP2.

Direct costs of the period were $170,000, $360,000, and $600,000 for S1, S2, and S3, respectively. Allocate the support department costs to the operating departments using the algebraicmethod.

Transcribed Image Text:

SERVICES USED S2 10% Department S1 S2 S3 S1 n/a 40% 20 S3 209% 30 RP1 306 20 40 RP2 40% 10 10 na 30 na