Marvin Company has three service departments ( \(\mathrm{S} 1, \mathrm{~S} 2, \mathrm{~S} 3\) ) and two production departments (P1, 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 production department.

Transcribed Image Text:

Budgeted Costs Number of Employees $1 $3,000,000 75 S2 2,000,000 50 S3 1,000,000 25 P1 150 P2 225