# Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2).

## Question:

Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service departmentâ€™s efforts (in percentages) to the other departments is

From: | To: | ||||||||

S1 | S2 | P1 | P2 | ||||||

S1 | - | 10% | 20% | ? % | |||||

S2 | 10% | - | ? % | 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.

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**Related Book For**

## Cost management a strategic approach

**ISBN:** 978-0073526942

5th edition

**Authors:** Edward J. Blocher, David E. Stout, Gary Cokins