This is about the methods in allocating support departments to producing departments. There are three methods: Direct Method, Step/Sequential Method, and Algebraic/Reciprocal Method. However, I have troubled solving with the Algebraic Method using three or more support departments.
Support Departments are: Administrative, Maintenance, and Power
Producing Departments are: Grinding and Assembly
These are the given linear equations:
Administrative = $2,130 + 16.67%Power + 7.32%Maintenance
Power = $1,680 + 5%Administrative + 9.76%Maintenance
Maintenance = $2,370 + 7.5%Administrative + 8.33%Power
Can you help me solve the values for Administrative, Power, and Maintenance? Thank you.