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Question(s) / Instruction(s):

A summary of the usage of the service department services by other services departments, as well as by two producing departments, is as follows:
                      Service Departments        Producing 
                                                Departments
Department          S1      S2      S3       P1        P2    
S1                 ---     .10     .05       .40      .45
S2                 ---     ---     ---       .45      .55
S3                 .10     .10     ---       .35      .45
Direct costs in the various departments are as follows:
Department    Direct Costs
S1              $210,000
S2              $180,000
S3              $540,000
P1              $2,100,000
P2              $2,700,000
If the reciprocal method of allocation is used, what equation would represent service department S1?
A.            S1=$210,000 +.10S2 +.05S3 +.4P1+.45P2
B.            S1=$210,000 +.45P1 +.55P2
C.            S1=$210,000 +.10S2 +.05S3
D.            S1=$210,000 +.10S2 +.10S3

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