Exercise 7-29 (Algo) Departmental Cost Allocation [LO 7-3] 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 S1 S2 P1 20% 30% 20% The direct operating costs of the departments (including both variable and fixed costs) are: 51 $ 190,000 68,000 55,000 145,000 From 51 52 52 P1 P2 P2 7% 40 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. 4 just need the reciprocal method, hank you!

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Exercise 7-29 (Algo) Departmental Cost Allocation [LO 7-3]
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
S2 P1
20% 30%
?
-
The direct operating costs of the departments (including both variable and fixed costs) are:
$1
S2
P1
P2
From
$1
$2
$1
-
20%
$ 190,000
68,000
55,000
145,000
P2
7%
40
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.
I just need the reciprocal method,
thank you!
Transcribed Image Text:Exercise 7-29 (Algo) Departmental Cost Allocation [LO 7-3] 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 S2 P1 20% 30% ? - The direct operating costs of the departments (including both variable and fixed costs) are: $1 S2 P1 P2 From $1 $2 $1 - 20% $ 190,000 68,000 55,000 145,000 P2 7% 40 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. I just need the reciprocal method, thank you!
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