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 direct labor hours) to other departments is as follows:
S1
S2
P1
P2
S1
-
300
500
200
S2
200
-
400
600
The direct operating costs of the departments (including both variable and fixed) are the following:
S1 - $80,000
S2 - $100,000
P1 - $70,000
P2 - $120,000
TOTAL - $370,000
Determine the total cost of P1 and P2 using the step method.
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