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 $ 165,000 272,500 S1 84,000 Potential allocation base P1 P2 Employee headcount 60 20 Space used (in square feet) 8,100 9,900 Productive capacity (in units) 47,250 87,750 3-year average percentage of S1 output used 60% 40% quired: Determine the total estimated overhead cost for each of the producing departments after allocating the cost of the service partment: Using employee headcount as the allocation base. Using occupied space as the allocation base. Using productive capacity as the allocation base. Using the 3-year average use as the allocation base. . Using employee headcount as the allocation base . Using occupied space as the allocation base . Using productive capacity as the allocation base Using the 3-year average use as the allocation base P1 P2 Total $ 0 $ 0 $ 0
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 $ 165,000 272,500 S1 84,000 Potential allocation base P1 P2 Employee headcount 60 20 Space used (in square feet) 8,100 9,900 Productive capacity (in units) 47,250 87,750 3-year average percentage of S1 output used 60% 40% quired: Determine the total estimated overhead cost for each of the producing departments after allocating the cost of the service partment: Using employee headcount as the allocation base. Using occupied space as the allocation base. Using productive capacity as the allocation base. Using the 3-year average use as the allocation base. . Using employee headcount as the allocation base . Using occupied space as the allocation base . Using productive capacity as the allocation base Using the 3-year average use as the allocation base P1 P2 Total $ 0 $ 0 $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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
$ 165,000
P2
272,500
S1
84,000
Potential allocation base
P1
P2
Employee headcount
60
20
Space used (in square feet)
8,100
Productive capacity (in units)
47,250
9,900
87,750
3-year average percentage of S1 output used
60%
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F35649906-d5da-490c-8bcf-6f9620d33fbe%2F33135335-3d94-403d-8370-ba3b5b34b8a5%2Favx4zxi_processed.png&w=3840&q=75)
Transcribed Image Text: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
$ 165,000
P2
272,500
S1
84,000
Potential allocation base
P1
P2
Employee headcount
60
20
Space used (in square feet)
8,100
Productive capacity (in units)
47,250
9,900
87,750
3-year average percentage of S1 output used
60%
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
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