10026_032410_96 - 350 = .35 P2 35,000 35/50 = .70 400 = .40...

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-Green sheet given out in class. -Title: Chapter 15 – Example 2 (Multiple Service Departments) A.) Direct Method (Single Step) M = $90,000 = $2 per hour 1000+3500 P1 P2 10,000(2) = $20,000 35,000(2) = $70,000 C = $83,820 = $111.76 per hour 350+400 P1 P2 350(111.76) = $39,116 400(111.76) = $44,704 Dept. OH : $200,000 $400,000 $259,116 $514,704 $259,116/100,000 = $2.59 $514,704/150,000 = $3.43 B.) Step Method M C P1 P2 90,000/ 83,820 5000+10000+ 5000(1.8)=9000 18,000 63,000 35,000 = 1.80 43,316 49,504 OH: 200,000 400,000 261,316/ 512,504/ 100,000 = 150,000 = $2.61 $3.41 C.) Algebraic (Reciprocal) Method
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-State services provided as a percentage. MH CPU Minutes M ---- 250 = .25 C 5000 5/50 = .10 ---- P1 10,000 10/50 = .20
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Unformatted text preview: 350 = .35 P2 35,000 35/50 = .70 400 = .40 50,000 1000-Prepare a formula for each department that says how much cost they are responsible for. M = $90,000 + .25C C = $83,820 + .10C-Solve Equations Simultaneously C = 83,820 + .10(90,000 + .25C) C = 83,820 + 9000 + .025C C - .025C = 92,820 C = 92,820/.975 C = 95,200 M = 90,000 + .25(95,200) M = 90,000 +23,800 M = 113,800 P1 = .2M + .35C P1 = .2(113,800) + .35(95,200) P1 = 56,080 P2 = .7M + .4C P2 = .7(113,800) + .4(95,200) P2 = 117,740 P1 M 90,000 56,080 56,080 C 83,820 117,740 200,000 173,820 173,820 256,080/100,000 = $2.56...
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10026_032410_96 - 350 = .35 P2 35,000 35/50 = .70 400 = .40...

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