Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Allocate each of the three indirect expenses to the four departments Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Feet Asset
Allocate each of the three indirect expenses to the four departments
Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Feet Asset Values Department Materials Personnel Manufacturing Packaging Total Employees Square 27 9 63 51 150 $ 6,000 25,000 55,000 37,800 15,000 15,000 $ 60,000 50,000 22,500 5,000 100,000 1,200 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Insurance Total Cost $ 82,500 $ 155,000 Allocation Base Number of employees Square feet occupied Asset values Allocate each of the three indirect expenses to the four departments. Answer is not complete. Percent of Allocation Base Supervision expenses Department Materials Personnel Manufacturing Packaging Totals Utilities Department Materials Personnel Manufacturing Packaging Totals Allocation Base Number of employees Allocation Base Square feet occupied Numerator 27 Denominator 150 e 150 0/0 of Total 18.00% 6.00% Percent of Allocation Base Numerator 25,000 5,000 e Denominator 1 oo,ooo 1 oo,ooo 0/0 of Total 25.00% 5.00% Cost to be Allocated 82,500 82,500 82,500 82,500 Cost to be Allocated 50,000 50,000 50,000 50,000 Allocated Cost 82,500 Allocated Cost 50,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started