Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ch 09 Ex 9-5 Exercise 09-5 Departmental expense allocations LO P2 Woh Che Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent

image text in transcribed
image text in transcribed
image text in transcribed
Ch 09 Ex 9-5 Exercise 09-5 Departmental expense allocations LO P2 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 Supervision Utilities Insurance Total Cost Allocation Base $ 84,000 Number of employees 65,000 square feet occupied 30,000 Value of assets in use $179,000 Departmental data for the company's recent reporting period follow. Department Materials Personnel Manufacturing Packaging Total Employees Square FeetAsset Values 58,000 $ 7,500 7,250 1,500 65,250 48,750 14,500 17,250 145,000 $75,000 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. Required 1 Required 2 Use this information to allocate each of the three indirect expenses across the four departments. Allocation Base Supervision expenses Department Percent of Allocation Base Numerator Denominator of Total Cost to be Allocated Allocated Cost Materials Personnel Manufacturing Packaging Totals Utilities Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator of Total Department Materials Personnel Manufacturing Packaging Totals Insurance Allocation Base Percent of Allocation Base C ost to be Allocated Allocated Cost Numerator Denominator of Total Department Materials Personnel Manufacturing Packaging Total Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Print Supervision Utilities Insurance Total References Materials Personnel Manufacturing Packaging Totals

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting IFRS Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

2nd Edition

1118443969, 978-1118443965

More Books

Students also viewed these Accounting questions