edRobinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution ofeach service department's efforts (in percentages) to the other departments is:FromS152$1S1S2P1P220%$220%$ 220,00074,00061,000175,000ToP130%?The direct operating costs of the departments (including both variable and fixed costs) are:Required 1 Required 2P2Production department 1Production department 2?%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.40Complete this question by entering your answers in the tabs below.$$Determine the total cost of P1 and P2 using the reciprocal method. (Do not round intermediate calculations. Round your finalanswers to whole dollars.)Required 3Total CostAllocated183,548346,458< Required 2

The indirect costs are allocated among the different departments. The various methods for cost…

Answered: Robinson Products Company has two…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Alpha Company has three support departments whose direct department costs are P20,000, P30,000, and P40,000, respectively, and two producing departments whose direct department costs are P400,000 and P360,000, respectively. The combined total department cost for the producing departments after allocation of the support departments is?
When operating at a production level of 160,000 units, Cotton and Candy, Incorporated has fixed costs of $75,000 and total costs, including both fixed and variable, of $195,000. The total variable costs at a level of 174,000 units would be $81,563 $130,500 $120,000 $212,063
Davenport Incorporated has two divisions, Howard and Jones. The following is the segmented income statement for the past month: Howard Jones Total Sales revenue $ 800,000 $ 600,000 $ 1,400,000 Variable costs 400,000 480,000 880,000 Contribution margin $ 400,000 $ 120,000 $ 520,000 Direct fixed costs 200,000 100,000 300,000 Segment margin $ 200,000 $ 20,000 $ 220,000 Fixed costs (allocated) 150,000 150,000 300,000 Net operating income (loss) $ 50,000 $ (130,000) $ (80,000) What would Davenport's income (loss) be if the Jones Division was dropped?
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 S1 S2 To P1 10% 20% ? 10% S1 S2 P1 P2 – P2 $225,000 75,000 62,000 180,000 ?% The direct operating costs of the departments (including both variable and fixed costs) are: 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.
Mayfair Company has two service departments (A and B) and two producing departments (C and D). Last year, direct costs were A $80,000; B $60,000; C $15,000 and D $20,000. A provides services to B 10%, C 60% and D 30% while B provides services to A 30%, C 20% and D 50%. Using the algebraic method, Dept. A's allocation to Dept. C was $35,051$14,021$21,031$60,619
Coastal Carolina Company has a product with a unit selling price of $200, the unit variable cost is $110, and the total monthly fixed costs are $300,000. What is Coastal Carolina's contribution margin ratio? OA) 182% B) 55% C) 45% OD) 150%
Clothing Company has two service departments-purchasing and maintenance, and two production departments - fabrication and assembly. The distribution of each service department's efforts to the other departments is shown below: FROM Fabrication Purchasing 35% Maintenance 45% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing $ 111,000 33,000 Maintenance Fabrication Assembly Multiple Choice O $93.214 $188.250 Purchasing O SIOB.OBG 87,000 63,000 TO ex 30% The total cost accumulated in the fabrication department using the direct method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar) Maintenance 50% 0% Assembly 15% 25%
A division sold 250,000 calculators during 2020: Sales 3,000,000 Variable costs: Materials 690,000 Order processing 250,000 Billing labor 200,000 Selling expenses 110,000 Total variable costs 1,250,000 Fixed costs 1,500,000 How much is the unit contribution margin?
Ram Company has three geographic segments: New York, New Jersey, and Connecticut. Its segmented income statement for last year is shown below: Company New York New Jersey Connecticut Sales 800,000 350,000 250,000 200,000 Variable costs 440,000 140,000 120,000 CM Traceable Fixed Costs 90,000 65,000 50,000 Segment margin Common Fixed Costs Net operating income 1. What was the amount of segment margin for New York? a)$60,000 b)$70,000 c)$80,000 d)$50,000 2. If Ram Company’s total fixed costs were $305,000, how much were the company’s common fixed costs? a)$110,000 b)$80,000 c)$100,000 d)$90,000

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