Weld-Rite Fabricators has two producing departments, P1 and P2, and one service department, S1. Estimated directed overhead costs per month are as follows:
P1 $300,000
P2 500,000
S1 182,000
Other data follow:
P1 P2
Numbers of employees 150 50
Production capacity (units) 100,000 60,000
Space occupied (square feet) 5,000 15,000
Five-year average of S1's service output used 65% 35%
For each of the following allocation bases, determine the total estimated overhead cost for P1 and P2 after allocating S1 cost to the producing departments.
P1 P2
1. Based on number of employees $Answer $Answer
2. Production capacity in units Answer Answer
3. Space occupied Answer Answer
4. Five-year average of S1 services used Answer Answer
5. Estimated direct overhead costs Answer Answer

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