Craylon Corp Has Two Service Departments,S1 and S2,and Two Production

question 79

Essay

Craylon Corp has two service departments,S1 and S2,and two production departments,P1 and P2.
The data for April were as follows:
$$\begin{array} { | l | l | c | c | c | c | } \hline & & { \text { Services provided to: } } \\\hline \text { Activity } & \text { Costs } & \text { S1 } & \text { S2 } & \text { P1 } & \text { P2 } \\\hline \text { S1 } & \$ 100,000 & & 20 \% & 40 \% & 50 \% \\\hline \text { S2 } & \$ 80,000 & 10 \% & & 55 \% & 25 \% \\\hline & \text { Fixed Costs } & & & & \\\hline \text { P1 } & \$ 400,000 & & & & \\\hline \text { P2 } & \$ 500,000 & & & & \\\hline\end{array}$$ Required:
a.Set up algebraic equations in linear form for each activity.
b.Determine total costs for each department by solving the equations from part (a)using the reciprocal method.

---

Definitions:

Neutrons

Subatomic particles found in the nucleus of an atom; they are electrically neutral and along with protons, contribute to the atomic mass.

Ionic Bond

Chemical bond in which ions are attracted to one another by opposite charges.

Transferred

The act of moving or passing something from one place, person, or thing to another.

Shared Equally

Distributed in an identical manner among all parties involved, ensuring parity and fairness.