Determine the total cost of p1 and p2 using direct method

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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

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 $ 235,000
S2 77,000
P1 64,000
P2 190,000

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. (Round your intermediate calculations to the nearest whole dollar and final answers to 2 decimal places.)

Reference no: EM131763333

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