As Cornerstone 7.5 shows, the steps for the reciprocal method are:
1. Compute the allocation ratios for all support and producing department
2. Form a simultaneous system with one equation for each support department. The interpretation of each equation is that the total reciprocated cost of the support department equals its original cost plus any cost that it imposes on any other support departments.
3. Solve the simultaneous equations system for each unknown to obtain the total reciprocated cost of each support department.
4. Allocate the total reciprocated costs of support departments to other support departments and to the producing departments based on the allocation ratios developed in Step 1.