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Category > Business & Finance Posted 04 May 2017 My Price 20.00

Departmental Cost Allocation

7-30    Departmental Cost Allocation 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

 

 

To

 

From

S1

S2

 

P1

P2

S1 S2

— 10%

10%

—

 

20%

?%

?% 30%

 

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

 

S1

$180,000

S2

60,000

P1

50,000

P2

120,000

 

 

 

 

 

 

 

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.

 

Answers

(8)
Status NEW Posted 04 May 2017 12:05 PM My Price 20.00

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