Reference no: EM132999249

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 $ 180,000
S2 60,000
P1 50,000
P2 120,000

Required:

Problem 1. Determine the total cost of P1 and P2 using the direct method.

Problem 2. Determine the total cost of P1 and P2 using the step method.

Problem 3. Determine the total cost of P1 and P2 using the reciprocal method.