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: Fron $1 52 P1 P2 20% 30% 74 ? The direct operating costs of the departments (including both variable and fixed costs) are: $ 170,000 68,000 54,000 140,000 $1 $1 52 P1 32 20% 40 Required: 1. Determine the total cost of P1 and P2 using the direct metholt. 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. Complete this question by entering your answers in the tabs below.
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: Fron $1 52 P1 P2 20% 30% 74 ? The direct operating costs of the departments (including both variable and fixed costs) are: $ 170,000 68,000 54,000 140,000 $1 $1 52 P1 32 20% 40 Required: 1. Determine the total cost of P1 and P2 using the direct metholt. 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. Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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:
Fron
s1
52
The direct operating costs of the departments (including both variable and fixed costs) are:
s1
20%
s1
52
PL
P2
To
$ 170,000
68,000
54,000
140,000
52
P1
20% 30%
2
P2
2%
Production department 1
Production department 2
40
Required:
1. Determine the total cost of P1 and P2 using the direct metholt.
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.
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
< Required 1
Required 2 >
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