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.
Answer with working notes is given below
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: To S1 P1 From S1 S2 S2 10% 20% ? P2 ?% 30 10% The direct operating costs of the departments (including both variable and fixed costs) are: S1 S2 P1 P2 $ 225,000 72,000 59,000 165,000 Required: 1. Determine the total cost of P1 and P2 using the...
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: To From S1 S2 P1 P2 S1 78 -20% 30% S2 20% 2 40 The direct operating costs of the departments (including both variable and fixed costs) are: Si $255,000 85,000 63,000 P2 185,000 S2 P1 Required: 1. Determine the total cost of P1 and P2 using the direct...
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: To From S1 S2 P1 P2 S1 78 -20% 30% S2 20% 2 40 The direct operating costs of the departments (including both variable and fixed costs) are: Si $255,000 85,000 63,000 P2 185,000 S2 P1 Required: 1. Determine the total cost of P1 and P2 using the direct...
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: 20 7 30 The direct operating costs of the departments (including both variable and fixed costs) are: S1 $225,000 $2 $2 2,000 P2 165,000 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...
Robinson Products Company has two service departments (51 and 52) and two production departments (P1 and P2). The distribution of each service department's efforts in percentages) to the other departments is: S1 From S1 S2 To S2 P1 20% 30% P2 ?% 40 20% The direct operating costs of the departments (including both variable and fixed costs) are: S1 S2 P1 P2 $ 235,000 77,000 64,000 190,000 Required: 1. Determine the total cost of P1 and P2 using the direct...
Craylon Corp has two service departments, S1 and S2, and two production departments, P1 and P2. The data for April were as follows: Services provided to: Activity Costs S1 S2 P1 P2 S1 (cost)$100,000 S1 none S2 20% p1 40% p2 50% S2 cost $80,000 s110% S2 none p1 55% p2 25% Fixed Costs P1 $400,000 P2 $500,000 Required: Allocate the service departments' (S1 & S2) costs to the two operating divisions using the reciprocal method.
Craylon Corp has two service departments, S1 and S2, and two production departments, P1 and P2. The data for April were as follows: Services provided to: Activity Costs S1 S2 P1 P2 S1 $100,000 20% 40% 50% S2 $80,000 10% 55% 25% Fixed Costs P1 $400,000 P2 $500,000 Required: Allocate the service departments' (S1 & S2) costs to the two operating divisions using the reciprocal method.
Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: S1 S2 P1 0.70 0.10 0.20 0.20 0.30 0.50 Department Direct costs $ 60,000 $100,000 $160,000 $140,000 P2 Under the direct method of cost allocation, the amount of S1 costs allocated to S2 would be:...
Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and 52. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: S1 S2 P1 P2 0.70 0.10 0.20 0.20 0.30 0.50 Department Direct costs $ 60, 000 S2 $100,000 $160,000 P2 $140,000 S1 P1 Under the step method of allocation, the total amount of service costs...
RT Renovations is organized with two service departments (S1 and S2) and two production departments (P1 and P2). The company uses the step method to allocate service department costs, allocating from S1 to S2, P1, and P2 first. The cost accountant tells you that in November, $105,000 was allocated from S2 to P1 (including any cost allocated from S1 to S2). She also tells you that $55,000 was allocated from S1 to S2 in November. P1 used 15 percent of...