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Blue Chair International Blue Chair International has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the four departments incurred three shared indirect
Blue Chair International
Blue Chair International 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 Supervision Utilities Insurance Total Cont Allocation Base $ 82,500 Number of employees 50,000 square feet occupied 22.500 Value of assets in use $155.000 Departmental data for the company's recent reporting period follow. Employees Department Materials Personnel Manufacturing Packaging Total 63 Square Feet 25,000 5,000 55,000 15,000 100,000 Aset Values $ 6,000 1,200 37,800 15,000 $60,000 150 Required 1 Required 2 Use this information to allocate each of the three Indirect expenses across the four departments. Allocation Base Cost to be Allocated Allocated Cost Supervision expenses Department Materials Percent of Allocation Base Numerator Denominator % of Total Personnel Manufacturing Packaging OO Totals Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Utilities Department Materials Personnel Manufacturing Packaging Totals Insurance Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Department Materials Personnel Manufacturing Packaging OOOO Totals Required 2 > Required 1 Required 2 Prepare a summary table that reports the Indirect expenses assigned O 5 Utilities Insurance TTT3 Materials Personnel Manufacturing Packaging Totals O O OOO OSOS Step by Step Solution
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