A bank has three service centers: EDP (electronic data processing), copying, and accounting. These service centers provide services to one another as well as to three operating divisions: A, B, and C. The distribution of each service center’s output as well as its cost (in millions) is given in the accompanying table.
Fraction of Service Center Output Used
| EDP | Copying | Accounting | Division A | Division B | Division C | Total Cost | |
| EDP | 0.15 | 0.06 | 0.32 | 0.19 | 0.13 | 0.15 | $ 8.90 |
| Copy center | 0.10 | 0.00 | 0.25 | 0.25 | 0.22 | 0.18 | 1.80 |
| Accounting | 0.08 | 0.04 | 0.12 | 0.30 | 0.24 | 0.22 | 6.40 $17.10 |
Required:
Using the reciprocal method, allocate the costs of the service centers to the three operating divisions.
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