Reference no: EM132496460

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:

Round to two decimal places.

                 Budgeted Costs              Nbr of Employees

S1                   $3,360,000                       75

S2                     2,180,000                      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

Question 1: Calculate the total service department cost allocated to production department P1