Robinson Products Company has two service departments (S1 and $2) and two production departments (P1 and P2) The distribution of each service department's efforts in percentages) to the other departments 1 From $1 52 To 51 52 P1 2011 30% H 201 P2 $2,000 130,000 7% 40 The direct operating costs of the departments (including both variable and fixed costs) are: 51 $ 175,000 52 65,000 PL P2 Required: 1. Determine the total cost of Pi and P2 using the direct method 2. Determine the total cost of Pi and P2 using the step method 3. Determine the total cost of Ps and P2 using the reciprocal method
Robinson Products Company has two service departments (S1 and $2) and two production departments (P1 and P2) The distribution of each service department's efforts in percentages) to the other departments 1 From $1 52 To 51 52 P1 2011 30% H 201 P2 $2,000 130,000 7% 40 The direct operating costs of the departments (including both variable and fixed costs) are: 51 $ 175,000 52 65,000 PL P2 Required: 1. Determine the total cost of Pi and P2 using the direct method 2. Determine the total cost of Pi and P2 using the step method 3. Determine the total cost of Ps and P2 using the reciprocal method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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