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 - 10% 20% %? S2 10% - %? 30% The direct operating costs of the departments (including both variable and fixed costs) are: S1 $ 225,000 S2 75,000 P1 62,000 P2 180,000 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.
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 - 10% 20% %? S2 10% - %? 30% The direct operating costs of the departments (including both variable and fixed costs) are: S1 $ 225,000 S2 75,000 P1 62,000 P2 180,000 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.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter15: Introduction To Managerial Accounting
Section: Chapter Questions
Problem 3CMA: A firm has 100,000 in direct materials costs, 50,000 in direct labor costs, and 80,000 in overhead....
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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 percentages) to the other departments is:
| To | |||||
| From | S1 | S2 | P1 | P2 | |
| S1 | - | 10% | 20% | %? | |
| S2 | 10% | - | %? | 30% |
The direct operating costs of the departments (including both variable and fixed costs) are:
| S1 | $ | 225,000 |
| S2 | 75,000 | |
| P1 | 62,000 | |
| P2 | 180,000 | |
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.
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