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, P1and P2, and only one service department, S1. The company is able to track overhead to the various departments but wantsto allocate the service department costs to the producing departments. However, the company is not sure which of themultiple allocation bases should be selected. The data it collected appear in the table below.OverheadAssignedDepartmentP1$ 165,000P2272,500S184,000Potential allocation baseP1P2Employee headcount6020Space used (in square feet)8,100Productive capacity (in units)47,2509,90087,7503-year average percentage of S1 output used60%40%Required:1. Determine the total estimated overhead cost for each of the producing departments after allocating the cost of the servicedepartment: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 baseb. Using occupied space as the allocation basec. Using productive capacity as the allocation based. Using the 3-year average use as the allocation baseP1P2Total$0$0$0$0

The overhead costs comprises the indirect costs incurred for the production. The production costs…

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

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...