Motorcade Company has three service departments (S1, S2, and S3) and two production departments (P1 and P2). The following data relate to Motorcade’s…

Motorcade Company has three service departments (S1, S2, and S3) and two production departments (P1 and P2). The following data relate to Motorcade’s allocation of service department costs:
   Budgeted Costs
Nbr of Employees
 S1
$3,120,000
75
 S2
2,420,000
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
Your Answer:
 
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