Motorcade Company as three service departments (S1, S2, S3) and two production departments (P1 and P2).
Motorcade Company as three service departments (S1, S2, S3) and two production departments (P1 and P2). The
following data relate to Motorcade’s allocation of service department costs:
Round to two decimal places.
Budgeted Costs
Nbr of Employees
S1
$3,200,000
75
S2
2,200,000
50
S3
1,000,000
25
P1
150
P2
225
Service department costs are allocated by the direct method. The number of employees is used as the allocation base for all service department costs
Calculate the total service department cost allocated to production department P1
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