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Exercise 7-29 (Algo) Departmental Cost Allocation (LO 7-3] Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2).
Exercise 7-29 (Algo) Departmental Cost Allocation (LO 7-3] 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: S1 From S1 S2 To S2 10% P1 20% ? P2 ?% 30 10% The direct operating costs of the departments (including both variable and fixed costs) are: S1 S2 P1 P2 $ 225,000 75,000 62,000 180,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total cost of P1 and P2 using the direct method. (Do not round intermediate calculations.) Total Cost Allocated Production department 1 Production department 2 Required 1 Required 2 Required 3 Determine the total cost of P1 and P2 using the step method. (Do not round intermediate calculations.) Total Cost Allocated Production department 1 Production department 2 Required 1 Required 2 Required 3 Determine the total cost of P1 and P2 using the reciprocal method. (Do not round intermediate calculations. Round your final answers to whole dollars.) Total Cost Allocated Production department 1 Production department 2
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