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. S1 S2 S3 P1 P2 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 Budgeted Costs $3,120,000 2,140,000 1,000,000 Nbr of Employees 75 50 25 150 225

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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.
S1
S2
S3
P1
P2
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
Budgeted
Costs
$3,120,000
2,140,000
1,000,000
Nbr of
Employees
75
50
25
150
225
Transcribed Image Text: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. S1 S2 S3 P1 P2 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 Budgeted Costs $3,120,000 2,140,000 1,000,000 Nbr of Employees 75 50 25 150 225
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