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Question 5 Partially correct Mark 0.60 out of 1.00 p Hay question Allocating Service Department Costs: Allocation Basis Alternatives Weld-Rite Fabricators has two producing departments,

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Question 5 Partially correct Mark 0.60 out of 1.00 p Hay 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 $600,000 P2 1,000,000 51 364,000 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 Si'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. P2 1. Based on number of employees $ 873,000 $ 1,091,000 2. Production capacity in units 827,500 1,136,500 3. Space occupied 691,000 1,273,000 4. Five-year average of S1 service used 836,600 5. Estimated direct overhead costs 836,600 X 1,127,400 x Check

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