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KAB, Inc. has two service departments (51 and 52) and two production departments (P1 and P2). Information from the most recent year shows the following
KAB, Inc. has two service departments (51 and 52) and two production departments (P1 and P2). Information from the most recent year shows the following for each department: S1 S2 P1 P2 Direct overhead $30,000 $20,000 $55,000 $45,000 Allocated overhead 5,000 2,500 12,500 10,000 Machine hours 2,00 800 Square feet 3,000 1,000 KAB allocates 51 to the production departments based on square feet and S2 based on machine hours. How much of Sl's overhead is allocated to P2? Select one: O a. $7,500 O b. $8,750 o c. $11,667 O d. $28,000
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