Reference no: EM132588402

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           $3,200,000                         75

S2           $2,340,000                        50

S3            $100,000                         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