Question

Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and...

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

To

S1 S2 P1 P2
S1 20% 30% ? %
S2 20% ? 40

The direct operating costs of the departments (including both variable and fixed costs) are:

S1 $ 205,000
S2 71,000
P1 58,000
P2 160,000

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.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer with working notes is given below

Sy S2 P1 Total 20.00% 30.00% 40.00% P2 50.00% 40.00% 100% 100% 20.00% 1 Direct Method Service Department Production Departmen

Add a comment
Know the answer?
Add Answer to:
Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT