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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
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 Cost Allocation Base Supervision $ 82,680 Number of employees Utilities 51,000 square feet occupied Insurance 23,608 value of assets in use Total $156,600 Departmental data for the company's recent reporting period follow. Department Employees Square Feet Asset Values Materials 24 22,000 56,100 Personnel 6 11,000 1,830 Manufacturing 48 55,000 36,600 Packaging 42 22,000 16,470 Total 120 110,000 $61,800 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, Allocated Cost Allocated Cost Use this information to allocate each of the three indirect expenses across the four departments. Supervision Cost to be Allocation Base expenses Percent of Allocation Base Allocated Department Numerator Denominator % of Total Materials Personnel Manufacturing Packaging Totals Cost to be Utilities Allocation Base Percent of Allocation Base Allocated Department Numerator Denominator % of Total Materials Personnel Manufacturing Packaging Totals Cost to be Insurance Allocation Base Percent of Allocation Base Allocated Department Numerator Denominator % of Total Materials Personnel Manufacturing Pacicaging Totals Allocated Cost 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. 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 Insurance Total Supervision Utilities Materials Personnel Manufacturing Packaging Totals
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