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. Department S1 S2 N/A 10% 40% N/A S1 S2 S3 Services Used S3 20 30 N/A RP1 RP2 30% 40% 30 20 10 40 10 20%
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. Department S1 S2 N/A 10% 40% N/A S1 S2 S3 Services Used S3 20 30 N/A RP1 RP2 30% 40% 30 20 10 40 10 20%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Algebraic method
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.
Services Used
S3
Department S1 S2
N/A 10%
40% N/A
S1
S2
S3
20 30 N/A
RP1 RP2
20% 30% 40%
30 20 10
40 10
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 algebraic method.
Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar.
Note: Round your final answers below to the nearest 100; for example, round 8,668 to 8,700.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F99496306-1037-41d4-853b-084bdadea40e%2F2811cffb-ba4f-41ee-8f3e-bdbd8daa97a6%2F5g6nbtq_processed.png&w=3840&q=75)
Transcribed Image Text:Algebraic method
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.
Services Used
S3
Department S1 S2
N/A 10%
40% N/A
S1
S2
S3
20 30 N/A
RP1 RP2
20% 30% 40%
30 20 10
40 10
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 algebraic method.
Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar.
Note: Round your final answers below to the nearest 100; for example, round 8,668 to 8,700.
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