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
OUR PROCESS
Order
Payment
Writing
Delivery
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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
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