Question
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
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:
TO
FROM | 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 | $ 220,000 |
S2 | $74,000 |
P1 | $ 61,000 |
P2 | $175,000 |
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.
(Do not round intermediate calculations.).
***Please show all your work on how you get the answers in a working note. I would really need to understand this problem and how its solved. Please show me how you get all numbers if its not obvious from the information given. Thank you!***
THIS QUESTION WAS POSTED BEFORE AND WAS INCORRECT BY LAST PERSON THAT SOLVED IT. IM REPOSTING. PLEASE SHOW ALL WORK AND HOW YOU GET ALL CALCULATIONS. ITS IMPORTANT I UNDERSTAND.
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