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 percentage) to the other departments is: From S1 S2 S1 S1 S2 P1 P2 20% S2 20% The direct operating costs of the departments are: $ 235,000 77,000 64,000 190,000 Το P1 30% ? 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. P2 ? % 40

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 percentage) to the other departments is:
From
S1
S2
S1
S1
S2
P1
P2
20%
The direct operating costs of the departments are:
$ 235,000
77,000
64,000
190,000
S2
20%
Do not round intermediate calculations.
Το
P1
30%
?
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.
P2
?%
40
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 percentage) to the other departments is: From S1 S2 S1 S1 S2 P1 P2 20% The direct operating costs of the departments are: $ 235,000 77,000 64,000 190,000 S2 20% Do not round intermediate calculations. Το P1 30% ? 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. P2 ?% 40
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