Reference no: EM132504377

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                        $ 3,080,000                           75

S2                            2,520,000                          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