Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service departments 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

$

255,000

S2

85,000

P1

63,000

P2

185,000

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.)