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 butwants to allocate the service department costs to the producing departments. However, the company is not sure which ofthe multiple allocation bases should be selected. The data it collected appear in the table below.ODepartmentP1P2s1WPotential allocation baseEmployee headcountSpace used (in square feet)Productive capacity (in units)3-year average percentage of S1 output useda. 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 baseUsing productive capacity as the allocation based. Using the 3-year average use as the allocation baseOverheadAssigned$ 168,000Required:1. Determine the total estimated overhead cost for each of the producing departments after allocating the cost of the servicedepartment:F2277,00086,000#320EF354$888F4R%5F5T$$$$P1P1602,00061,65060%< Prev64,500 $21,500 $38,700 $51,600 $6 of 7F6P2YMacBook AirP2206,00075,35040%&721,500 $64,500 $47,300 $34,400 $F7TotalUNext >* CO86,00086,00086,00086,0008F10

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.

Cornerstones of Cost Management (Cornerstones Series)

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...

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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. Department P1 P2 S1 Overhead Assigned $ 156,000 259,000 78,000 Potential allocation base Employee headcount Space used (in square feet) Productive capacity (in units) 3-year average percentage of S1 output used 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 Required: 1. Determine the total…
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Required information [The following information applies to the questions displayed below.] Celestial Products, Inc., has decided to introduce a new product, which can be manufactured by either a computer- assisted manufacturing system or a labor-intensive production system. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows: Direct material Direct labor (DLH denotes direct-labor hours) Variable overhead Fixed overhead* Computer-Assisted Manufacturing System $ Volume 0.5DLH @ $25.50 0.5DLH @ $16.50 9.00 12.75 8.25 $4,410,000 units Labor-Intensive Production System $ 0.8DLH @ $21.00 0.8DLH @ $16.50 *These costs are directly traceable to the new product line. They would not be incurred if the new product were not produced. 9.90 16.80 13.20 $2,730,000 The company's marketing research department has recommended an introductory unit sales price of $75.00. Selling expenses are estimated to be $900,000…
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