KAB, Inc. has two service departments (S1 and S2) and two production departments (P1 and P2)....

 

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KAB, Inc. has two service departments (S1 and S2) and two production departments (P1 and P2). Information from the most recent year shows the following for each department: S1 S2 P1 P2 Direct overhead $30,000 $20,000 $55,000 $45,000 Allocated overhead 5,000 2,500 12,500 10,000 Machine hours 2,00 800 Square feet 3,000 1,000 KAB allocates S1 to the production departments based on square feet and S2 based on machine hours. How much of S1's overhead is allocated to P2? Select one: a. $7,500 b. $8,750 c. $11,667 d. $28,000 KAB, Inc. has two service departments (S1 and S2) and two production departments (P1 and P2). Information from the most recent year shows the following for each department: S1 S2 P1 P2 Direct overhead $30,000 $20,000 $55,000 $45,000 Allocated overhead 5,000 2,500 12,500 10,000 Machine hours 2,00 800 Square feet 3,000 1,000 KAB allocates S1 to the production departments based on square feet and S2 based on machine hours. How much of S1's overhead is allocated to P2? Select one: a. $7,500 b. $8,750 c. $11,667 d. $28,000

Answer rating: 100% (QA)

ANS WER c 11 667 C AL C UL ATION 30 000 x 1 000 3 000 10 000 20 000 x 800 2 000 8 00... View the full answer