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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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.
![Sign In Connect | McGraw H x M Question 3- QUIZ - CH 07-C X
ucation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A %252F%252Fbb.tulsacc.edu%252Fw...
071
ces
2
Required information
Exercise 7-25 (Algo) Selection of an Allocation Base [LO 7-1, 7-3]
[The following information applies to the questions displayed below.]
Department
P1
P2
S1
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.
Part 1 (Algo)
Potential allocation base
Employee headcount
Space used (in square feet)
Productive capacity (in units)
*3-year average percentage of S1 output used
W
Overhead
Assigned
$ 151,500
252,250
75,000
a. Using employee headcount as the allocation base
#3
20
E
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.
$
4
000
000
R
%
5
Saved
P1
< Prev
T
P1
^
6
60
2,700
25,200
60%
Cost Allocation in Service Ind X
3 of 6
Y
P2
MacBook Pro
www
A
P2
20
6,300
100,800
40%
&
7
$
Total
Next
▶II
U
* 00
8
0
+
1
(
9
(
0
Help
BE
0
a](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9af6ba29-c85f-411d-acdb-86ec361947fd%2Fa294b3ed-d3b7-46dd-aaf5-be820ecb6c22%2F41bqij_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sign In Connect | McGraw H x M Question 3- QUIZ - CH 07-C X
ucation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A %252F%252Fbb.tulsacc.edu%252Fw...
071
ces
2
Required information
Exercise 7-25 (Algo) Selection of an Allocation Base [LO 7-1, 7-3]
[The following information applies to the questions displayed below.]
Department
P1
P2
S1
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.
Part 1 (Algo)
Potential allocation base
Employee headcount
Space used (in square feet)
Productive capacity (in units)
*3-year average percentage of S1 output used
W
Overhead
Assigned
$ 151,500
252,250
75,000
a. Using employee headcount as the allocation base
#3
20
E
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.
$
4
000
000
R
%
5
Saved
P1
< Prev
T
P1
^
6
60
2,700
25,200
60%
Cost Allocation in Service Ind X
3 of 6
Y
P2
MacBook Pro
www
A
P2
20
6,300
100,800
40%
&
7
$
Total
Next
▶II
U
* 00
8
0
+
1
(
9
(
0
Help
BE
0
a
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education