Robinson Products Company has two service departments (S1 and 52) and two production departments (P1 and P2). The distribution of each service department's efforts (in percentages) to the other departments is: From $1 TO 65,000 52,000 130,000 P2 20% 30% 74 40 The direct operating costs of the departments (including both variable and fixed costs) are: 51 $ 175,000 52 P1 P2 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total cost of P1 and P2 using the direct method. (Do not round intermediate calculations.) Total Cost Allocated Production department 1 Production department 2

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter8: Tactical Decision-making And Relevant Analysis
Section: Chapter Questions
Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...
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Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of
each service department's efforts (in percentages) to the other departments is:
From
51
52
$1
$2
51
20%
P1
P2
To
$2 P1
20%
$ 175,000.
65,000
52,000
130,000
30%
7
The direct operating costs of the departments (including both variable and fixed costs) are:
P2
7%
40
Production department 1
Production department 2
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.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 3
Determine the total cost of P1 and P2 using the direct method. (Do not round intermediate calculations.)
Total Cost
Allocated
………………………
Transcribed Image Text:Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service department's efforts (in percentages) to the other departments is: From 51 52 $1 $2 51 20% P1 P2 To $2 P1 20% $ 175,000. 65,000 52,000 130,000 30% 7 The direct operating costs of the departments (including both variable and fixed costs) are: P2 7% 40 Production department 1 Production department 2 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total cost of P1 and P2 using the direct method. (Do not round intermediate calculations.) Total Cost Allocated ………………………
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