Allocating Service Department Costs: Allocation Basis Alternatives Weld-Rite Fabricators has two producing departments, P1 and P2, and one service department, S1. Estimated directed overhead costs per month are as follows: P1 $150,000 P2 250,000 S1 91,000 Other data follow: Numbers of employees P1 P2 150 50 Production capacity (units) Space occupied (square feet) Five-year average of S1's service output used 100,000 60,000 5,000 15,000 65% 35% For each of the following allocation bases, determine the total estimated overhead cost for P1 and P2 after allocating S1 cost to the producing departments. 1. Based on number of employees P1 P2 $ 540,000 $ 900,000 2. Production capacity in units 540,000 x 3. Space occupied 0 4. Five-year average of S1 service used 0 1,022,850 x 0 0 5. Estimated direct overhead costs 0 1,104,750 x