Calculate the total service department cost

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Reference no: EM132032549

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:

Budgets Costs # of Employees

S1 $3,040,000 75

S2 2,720,000 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.

Reference no: EM132032549

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