Accounting Assignment
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
|
$3,400,000
|
75
|
|
S2
|
2,380,000
|
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