Exercise $7-29($Algo$)$ Departmental Cost Allocation $[$LO $7-3]$

Robinson Products Company has two service departments $($S$1$ and S$2)$ and two production departments $($P$1$ and P$2).$ The

distribution of each service department's efforts $($in percentages$)$ to the other departments is:

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

Required:

Determine the total cost of $P1$ and $P2$ using the direct method.

Determine the total cost of P$1$ and P$2$ using the step method.

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

Answer is complete but not entirely correct.

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