## 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- **P1:** $186,000- **P2:** $277,000- **S1:** $86,000| Potential Allocation Base | P1 | P2 ||---------------------------------------------|-----|-----|| Employee headcount | 60 | 20 || Space used (in square feet) | 2,000 | 6,000 || Productive capacity (in units) | 61,650 | 75,350 || 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.#### Table of Allocated Costs:| Allocation Base | P1 | P2 | Total ||--------------------------------------------|--------|--------|---------|| a. Using employee headcount | $64,500| $21,500| $86,000 || b. Using occupied space | $21,500| $64,500| $86,000 || c. Using productive capacity | $38,700| $47,300| $86,000 || d. Using the 3-year average use | $51,600| $34,400| $86,000 |### Explanation of Graphs and Diagrams:- **Tables:** The tables display the overhead costs and the potential allocation bases for departments P1 and P2. The amounts are shown in monetary values, represented in dollars.- **Allocation Base Table:** Shows the potential bases for allocating the service department costs,

An allocation base, also known as a cost driver or cost allocation factor, is a measure or attribute…

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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost Driver and guard wages i Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses office expenses Administrative expenses. The distribution of resource consumption…