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 $1 S2 $1 To 52 P1 10% 10% 20% ? The direct operating costs of the departments (including both variable and fixed costs) are: 51 $ 180,000 52 60,000 P1 50,000 P2 120,000 P2 7% 30 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. Production department 1. Production department 2 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
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 $1 S2 $1 To 52 P1 10% 10% 20% ? The direct operating costs of the departments (including both variable and fixed costs) are: 51 $ 180,000 52 60,000 P1 50,000 P2 120,000 P2 7% 30 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. Production department 1. Production department 2 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
52
S1
10% 20%
S2
?
The direct operating costs of the departments (including both variable and fixed costs) are:
51
$ 180,000
S2
60,000
P1
50,000
P2
120,000
$1
To
10%
P1 P2
78
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.
Required 1 Required 2
30
Complete this question by entering your answers in the tabs below.
Production department 1.
Production department 2
Required 3
Determine the total cost of P1 and P2 using the direct method. (Do not round intermediate calculations.)
Total Cost
Allocated
Required 2 >
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