Required information [The following information applies to the questions displayed below.] Great Ape Glassworks manufactures glass...
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Required information [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. Overhead Assigned Department P1 P2 $ 166,500 274,750 $1 85,000 Potential allocation base Pl P2 Employee headcount 60 20 Space used (in square feet) 8,550 Productive capacity (in units) 54,400 10,450 81,600 3-year average percentage of S1 output used 608 40% 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 $ 0 $ 0 $ 0 $ 0 Prev 1 of 1 Next Required information [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. Overhead Assigned Department P1 P2 $ 166,500 274,750 $1 85,000 Potential allocation base Pl P2 Employee headcount 60 20 Space used (in square feet) 8,550 Productive capacity (in units) 54,400 10,450 81,600 3-year average percentage of S1 output used 608 40% 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 $ 0 $ 0 $ 0 $ 0 Prev 1 of 1 Next
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