Calculate the total service department cost allocated

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Reference no: EM131920521

Problem

Motorcade company has 3 service departments (s1, s2, s3) and 2 production departments (p1, p2) the following data relate to motorcades allocation of service department costs.

Budgeted         costs          Nbr of employees
    S1           $3,000,000                75
    S2           $2,320,000.               10
    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: EM131920521

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