Robinson Products Company has two service departments (S1 and S2) and two production departments (P1...

80.2K

Verified Solution

Question

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 direct labor hours) to other departments is as follows:

S1 S2 P1 P2
S1 - 300 500 200
S2 200 - 400 600

The direct operating costs of the departments (including both variable and fixed) are the following:

S1 - $80,000

S2 - $100,000

P1 - $70,000

P2 - $120,000

TOTAL - $370,000

Determine the total cost of P1 and P2 using the step method.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students