Need business and finance help to calculate the total service department cost allocated to production department

Nov 11th, 2015
Steve1995
Category:
Business & Finance
Price: $5 USD

Question description

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

               costs             employees

S1           3,320,000      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



       

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