Robinson Products Company has two service departments (S1 and S2) and two production departments (P1...
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Accounting
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 | $ 265,000 |
|---|---|
| S2 | 83,000 |
| P1 | 70,000 |
| P2 | 220,000 |
Required:
3. Determine the total cost of P1 and P2 using the reciprocal method.
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