Boston Fabricators has two producing departments, P1 and P2. and one service department, S1. Estimated direct overhead
Fantastic news! We've Found the answer you've been seeking!
Question:
Boston Fabricators has two producing departments, P1 and P2. and one service department, S1.
Estimated direct overhead costs per month are as follows:
P1 | $150,000 |
P2 | $250,000 |
S1 | $91,000 |
Other data follow:
P1 | P2 | |
Number of employees | 75 | 25 |
Production capacity(units) | 50,000 | 30,000 |
Space occupied (square feet) | 2,500 | 7,500 |
Five-year average percent of ofS1's service output used | 65% | 35% |
Required:
For each of the following allocation bases, determine the total estimated overhead cost for PI and P2 after allocating S1 cost to the producing departments.
1. The number of employees
2. Production capacity in units
3. Space occupied
4. The five-year average percentage of S1 services used
5. Estimated direct overhead costs.
Related Book For
Cost Management A Strategic Emphasis
ISBN: 978-1259917028
8th edition
Authors: Edward Blocher, David F. Stout, Paul Juras, Steven Smith
Posted Date: