Need business and finance help to calculate the total service department cost allocated to production department
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 Nbr of
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costs employees
S1 3,160,000 75
S2 2,260,000 50
S3 1,000,000 25
P1 150
P2 225
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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
