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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
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 $ 190,000 S2 68,000 P1 55,000 P2 145,000 Required: 1. Determine the total cost of P1 and P2 using the direct method.
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