Business, 01.07.2020 15:01 keshewar4427

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?
a. $7,500
b. $8,750
c. $11,667
d. $28,000

Answers: 3

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

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