Gray Enterprises Has Two Support Departments (S1 and S2) and Two

question 129

Essay

Gray Enterprises has two support departments (S1 and S2) and two producing departments (A and B).The distribution of services by the support departments is as follows:
Total department costs for the support and producing departments are as follows:
Required:
Find the amount of total costs for A and B using the reciprocal method.

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Definitions:

Support Products

Additional items or services offered to complement a primary product or service.

Complementary Products

Goods or services that enhance or are necessary for the use of another product, often bought together by consumers.

Producing Other Products

This involves diversifying production to create different products, possibly outside a company’s traditional offerings.

Supplies

Materials, equipment, or provisions that are needed for a particular operation or activity.