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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
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 xpenses and the bases used to allocate them follow. Indirect Expense Cost location Base 84,400 Number of employees Supervision 69,000 square feet occupied Utilities Insurance 32,000 Value of assets in use $185,400 Total Departmental data for the company's recent reporting period follow. Department Employees Square Feet Asset values Materials 64,750 7,900 Personnel 9,250 4,740 Manufacturing 76 92,500 45,820 Packaging 18,500 20,540 Total 190 185,000 $79,000
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