Marvin Company has three service departments, S1, S2, and S3, and two production departments, P1 and P2.The following data relate to Marvin€™s allocation of service department costs:

Service department costs are allocated by the direct method. The number of employees is used

as the allocation base for all service department costs.

Required

a. Allocate service department costs to production departments.

b. Calculate the total service department cost allocated to each productiondepartment

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S1 S2 S3 P1 P2 Budgeted Costs 4,000,000 3,000,000 2,000,000 Number of Employees 80 60 30 200 300