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 $ 255,000 S2   85,000 P1   66,000 P2   200,000     Required: 3. Determine the total cost of P1 and P2 using the reciprocal method.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 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 $ 255,000
S2   85,000
P1   66,000
P2   200,000
 

 

Required:

3. Determine the total cost of P1 and P2 using the reciprocal method.

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