Princess Cruise Lines has the following service departments: concierge, valet, and maintenance. Expenses for these departments are allocated to Mediterranean and transatlantic cruises. Expenses for the departments are totaled (both variable and fixed components are combined) and as follows.
Concierge $1,500,000
Valet $2,750,000
Maintenance $2,250,000
The sea miles logged are 6,000,000 for the Mediterranean and 18,000,000 for the transatlantic voyages.
Based upon the sea miles logged, allocate the service department costs.