Other data follow For each of the following allocation bases

Other data follow:

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	$540,000
P2	900,000
S1	327,600

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

Solution

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. P1 P2 Total Base Working Allocated Base Working Allocated Based on Number of employees 200 150 327600/200*150 245700 50 327600/200*50 81900 Production Capacity in units 160000 100000 327600/160000*100000 204750 60000 327600/160000*60000 122850 Space Occupied 20000 5000 327600/20000*5000 81900 15000 327600/20000*15000 245700 Five Year Average 1 65% 327600*65% 212940 35% 327600*35% 114660 Estimate Direct Overhead Cost 1440000 540000 327600/1440000*540000 122850 900000 327600/1440000*900000 204750 P1 Direct Overhead P2 Direct Overhead P1 Allocated P2 Allocated P1 Total P2 Total Based on Number of employees 540000 900000 245700 81900 785700 981900 Production Capacity in units 540000 900000 204750 122850 744750 1022850 Space Occupied 540000 900000 81900 245700 621900 1145700 Five Year Average 540000 900000 212940 114660 752940 1014660 Estimate Direct Overhead Cost 540000 900000 122850 204750 662850 1104750