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

Nov 11th, 2015
Anonymous
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  3,160,000      75

S2  2,260,000     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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