Motorcade Company has three service departments (S1, S2, and S3) and two production departments (P1 and P2). The following data relate to Motorcade’s allocation of service department costs:

   Budgeted Costs

Nbr of Employees

 S1

$3,120,000

75

 S2

2,420,000

50

 S3

1,000,000

25

 P1

 150

 P2

 225

 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

Your Answer: