The Marvin Company has three service departments, S1, S2, and S3, and two production departments, P1 and P2. The following data relate to Marvin's allocation of service department costs:

Service department costs are allocated by the direct method. The number of employees is used as the allocation base for all service department costs.
Required
a. Allocate service department costs to production departments.
b. Calculate the total service department cost allocated to each production department.

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Budgeted Costs Number of Employees si S2 S3 $4,500,000 90 60 60 40 2,700,000 P1 200 300 P2