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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
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 | 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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