4)

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.

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	$	83,100	Number of employees
Utilities		56,000	Square feet occupied
Insurance		25,500	Value of assets in use
Total	$	164,600

Departmental data for the company?s recent reporting period follow.

Department	Employees	Square Feet	Asset Values
Materials		34			32,000		$	13,200
Personnel		17			16,000			1,980
Manufacturing		68			88,000			34,980
Packaging		51			24,000			15,840
Total		170			160,000		$	66,000

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.

please see attachment Supervision expenses department materials personnel manufacturing packaging totals allocation base utilities department materials personnel manufacturing totals allocation base insurance department materials personnel manufacturing totals allocation base supervision department materials personnel manufacturing packaging totals percent of allocation base numerator denominator percent of allocation base numerator denominator xIndirect allocated cost cost % of Toal xIndirect allocated cost cost %of total xIndirect allocated cost cost percent of allocation base numerator denominator % of total utilties total insurance