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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

image text in transcribedAllocating 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 $540,000
P2 900,000
S1 327,600

Other data follow:

P1 P2
Numbers of employees 150 50
Production capacity (units) 100,000 60,000
Space occupied (square feet) 5,000 15,000
Five-year average of S1's service output used 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.

P1 P2
1. Based on number of employees $Answer $Answer
2. Production capacity in units Answer Answer
3. Space occupied Answer Answer
4. Five-year average of S1 service used Answer Answer
5. Estimated direct overhead costs Answer Answer

QUESTION 20 Not complete Points out of 10.00 P Flag question 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 $540,000 P2 900,000 S1 327,600 Other data follow: P1 150 Numbers of employees Production capacity (units) Space occupied (square feet) Five-year average of S1 's service output used 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 100,000 60,000 5,000 15,000 P1 1. Based on number of employees 2. Production capacity in units 3. Space occupied 4. Five-year average of S1 service used 0 0 5. Estimated direct overhead costs Check

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