Motorcade Company has three service departments (S1, S2, and S3) and two production departments (P1 and P2).
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Question:
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: Round to two decimal places. | ||||
Budgeted Costs | Nbr of Employees | |||
S1 | $3,040,000 | 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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