Exercise 7-25 (Algo) Selection of an Allocation Base [LO 7-1, 7-3] [The following information applies to the questions displayed below.] Great Ape Glassworks manufactures glass used for the screens on smartphones. It has two producing departments, P1 and P2, and only one service department, S1. The company is able to track overhead to the various departments but wants to allocate the service department costs to the producing departments. However, the company is not sure which of the multiple allocation bases should be selected. The data it collected appear in the table below. Department P1 P2 Overhead Assigned $ 154,500 256,750 $1 77,000 Potential allocation base P1 P2 Employee headcount 60 Space used (in square feet) 4,400 Productive capacity (in units) 38,400 3-year average percentage of S1 output used 60% 20 6,600 89,600 40% Part 1 (Algo) Required: 1. Determine the total estimated overhead cost for each of the producing departments after allocating the cost of the service department: a. Using employee headcount as the allocation base. b. Using occupied space as the allocation base. c. Using productive capacity as the allocation base. d. Using the 3-year average use as the allocation base. a. Using employee headcount as the allocation base b. Using occupied space as the allocation base C. Using productive capacity as the allocation base d. Using the 3-year average use as the allocation base P1 P2 Total