2. Woh Che Co. has four departments: materials, personnel, manufacturing, and packaging. In a recent month, the four departments incurred three shared indirect expenses. The amounts of these indirect expenses and the bases used to allocate them follow.

Indirect Expense		Cost	Allocation Base
Supervision	$	83,900	Number of employees
Utilities		64,000	Square feet occupied
Insurance		29,500	Value of assets in use
Total	$	177,400

Departmental data for the companys recent reporting period follow.

Department	Employees				Square Feet				Asset Values
Materials		35				47,250				$	14,800
Personnel		7				13,500					4,440
Manufacturing		63				60,750					37,000
Packaging		35				13,500					17,760
Total		140				135,000				$	74,000

1. Use this information to allocate each of the three indirect expenses across the four departments. 2. Prepare a summary table that reports the indirect expenses assigned to each of the four departments.

3.

Advertising department expenses of $60,100 and purchasing department expenses of $43,000 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows.

Department	Sales			Purchase Orders
Books	$	163,800			984
Magazines		97,500			648
Newspapers		128,700			768
Total	$	390,000			2,400

Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.