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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 Motorcades allocation of

motorcade company has three service departments (s1, s2, and s3) and two production departments (p1 and p2). The following data relate to Motorcades allocation of service

department costs:

Budgeted costs Nbr of employess

s1$3,120,000 75

s2 2,360,00050

s31,000,000 25

p1 150

p2225

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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