edRobinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution ofeach service department's efforts (in percentages) to the other departments is:FromS152$1S1S2P1P220%$220%$ 220,00074,00061,000175,000ToP130%?The direct operating costs of the departments (including both variable and fixed costs) are:Required 1 Required 2P2Production department 1Production department 2?%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.40Complete this question by entering your answers in the tabs below.$$Determine the total cost of P1 and P2 using the reciprocal method. (Do not round intermediate calculations. Round your finalanswers to whole dollars.)Required 3Total CostAllocated183,548346,458< Required 2

The indirect costs are allocated among the different departments. The various methods for cost…

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 S1 S2 S1 S1 S2 P1 P2 20% To P1 S2 20% 30% ? P2 ?% 40 The direct operating costs of the departments (including both variable and fixed costs) are: $ 220,000 74,000 61,000 175,000 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: From S1 S2 S1 S1 S2 P1 P2 20% To P1 S2 20% 30% ? P2 ?% 40 The direct operating costs of the departments (including both variable and fixed costs) are: $ 220,000 74,000 61,000 175,000 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.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 6E: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing...

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