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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
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