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:
Budgeted Costs: Number of Employees
S1 $4,000,000 80
S2 $3,000,000 60
S3 $2,000,000 30
Service department costs are allocated by the direct method. The number of employees is used as the allocation base for all service department costs.
A) Allocate service department costs to production departments
B) Calculate the total service department cost allocated to each production department
Attachment has proper table. Thank you!
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