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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:

FromTo 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 $ 170,000

S2 64,000

P1 51,000

P2 125,000

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.

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