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:
Company has three service departments, S1, S2, and S3,Service department costs are allocated by the direct method. The number of employees is usedas 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