Robinson Products Company has two service departments (S1 and S2) and two production departments (P1...
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Accounting
Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service departments efforts (in percentages) to the other departments is:
From
To
S1
S2
P1
P2
S1
20%
30%
?%
S2
20%
?
40
The direct operating costs of the departments (including both variable and fixed costs) are:
S1
$ 265,000
S2
83,000
P1
70,000
P2
220,000
Required:
1. Determine the total cost of P1 and P2 using the direct method.
2. Determine the total cost of P1 and P2 using the step method.
3. Determine the total cost of P1 and P2 using the reciprocal method.
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