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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 | $3,400,000 | 75 |
| |
S2 | 2,380,000 | 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 | ||||
Calculate the total service department cost allocated to production department P1
10 years ago
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