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 $1 52 S1 10% To 52 10% P1 20% ? P2 2% 30

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:
From
51
52
$1
-
10%
To
52
10%
P1
20%
?
P2
2%
30
The direct operating costs of the departments (including both variable and fixed costs) are:
$1
$ 180,000
S2
60,000
P1
50,000
P2
120,000.
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
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: From 51 52 $1 - 10% To 52 10% P1 20% ? P2 2% 30 The direct operating costs of the departments (including both variable and fixed costs) are: $1 $ 180,000 S2 60,000 P1 50,000 P2 120,000. 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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