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Marvin Company has three service departments S1, S2, and S3 and two production departments, P1 and P2. The following data relate to Marvin's...


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
P1 200
P2 300

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

Attachment has proper table. Thank you!
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 P1 200 P2 300 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
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Accounting-8095226.xls

Exercise E6-8 Allocation of Service Department Costs
Marvin Company has three service departments (S1, S2, and S3) and two production departments (P1 and P2). The following data relate to Marvin's...

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