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 S1 S2 Το S1 S2 P1 P2 - 20% 30% ?% 20% ? 40 The direct operating costs of the departments (including both variable and fixed costs) are: S1 $ 195,000 S2 68,000 P1 P2 45,000 155,000 Required: Determine the total cost (including direct operating costs) of P1 and P2 using the: 1. Direct method. 2. Step method. 3. 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 reciprocal method. (Do not round intermediate calculations. Round your final answers to whole dollars.) Total Cost Allocated Production department 1 $ 44,583 Production department 2 $ 44,583

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 11MC: Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable...
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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
S1
S2
Το
S1
S2
P1
P2
-
20% 30%
?%
20%
?
40
The direct operating costs of the departments (including both variable and fixed costs) are:
S1
$ 195,000
S2
68,000
P1
P2
45,000
155,000
Required: Determine the total cost (including direct operating costs) of P1 and P2 using the:
1. Direct method.
2. Step method.
3. 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 reciprocal method. (Do not round intermediate calculations. Round your final
answers to whole dollars.)
Total Cost
Allocated
Production department 1
$
44,583
Production department 2
$
44,583
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 S1 S2 Το S1 S2 P1 P2 - 20% 30% ?% 20% ? 40 The direct operating costs of the departments (including both variable and fixed costs) are: S1 $ 195,000 S2 68,000 P1 P2 45,000 155,000 Required: Determine the total cost (including direct operating costs) of P1 and P2 using the: 1. Direct method. 2. Step method. 3. 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 reciprocal method. (Do not round intermediate calculations. Round your final answers to whole dollars.) Total Cost Allocated Production department 1 $ 44,583 Production department 2 $ 44,583
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