Determine total cost of p1 and p2 using the direct method

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Reference no: EM133378443

Case: 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	$175,000
S2	65,000
P1	52,000
P2	130,000

Required:

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

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

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

Reference no: EM133378443

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