Reference no: EM132011033

Question - 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:

Budgeted Cost Number of employees

S1 $4,500,000 90

S2 3,000,000 60

S3 2,700,000 40

P1 200

P2 300

Service department cost are allocated by the direct method. The number of employees is used as the allocation base for all service department cost.

Question A) Allocate service department cost to production departments.

Question B) Calculate the total service department cost allocated to each production department.