Reference no: EM132738870

Problem 1: Plants Company has two support departments (S1 and S2) and two producing departments (P1 and P2). Department S1 costs are allocated on the basis of number of employees, and Department S2 costs are allocated on the basis of space occupied expressed in square feet. Data on direct department costs, number of employees, and space occupied are as follows: Direct cost are: S1 has 7,500; S2 has 11,000;P1 has 27,500; and P2 has 30,000. Number of employees are: S1 has 10 employees; S2 has 5 employees;P1 has 20; and P2 has 25 employees. Space occupied are as follows: S1 occupied 1,000 sq ft; S2 has 500 sq ft; P1 occupies 1,500 sq ft and P2 occupies 2,500 sq ft. What is the total cost of P1 using reciprocal method?