Rust Company Has Two Support Departments (S1 and S2) and Two

question 71

Multiple Choice

Rust Company has two support departments (S1 and S2) and two producing departments (X and Y) . Department S1 serves departments S2, X, and Y in the following percentages, respectively: 10%, 35%, 55%. Department S2 serves departments S1, X, and Y in the following percentages, respectively: 6%, 50%, and 44%. Direct department costs for S1, S2, X, and Y are $15,000, $8,000, $105,000, and $97,500, respectively.
-Refer to the figure.What is S2's cost equation?

• A)S2 = $8,000 + 0.06S1
• B)S2 = $8,000 + 0.10S1
• C)S2 = $15,000 + 0.06S1
• D)S2 = $15,000 + 0.10S1

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Definitions:

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A procedure in law enforcement in which a collection of individuals is presented to a witness for the identification of a suspect.

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