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
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
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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