Reference no: EM132952530

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:

                                        Budgeted Costs           Nbr of Employees

S1                            $3,000,000                           75

S2                            2,640,000                              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

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