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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 10 % 20 % ? %
S2 10 % ? 30

The direct operating costs of the departments (including both variable and fixed costs) are:
S1 $ 225,000
S2 72,000
P1 59,000
P2 165,000

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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