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Calculate the total service department cost

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Question - Motorcade Company as three service departments (S1, S2, S3) and two production departments (P1 and P2). The following data relate to Motorcade's allocation of service department costs:

 

Budgeted Costs

Number of Employees

S1

$3,200,000

75

S2

2,200,000

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

Required - Calculate the total service department cost allocated to production department P1.

Reference no: EM132446425

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