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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 $ 82,780 Number of employees Utilities 52,000 square feet occupied 23,588 Value of assets in use Total Insurance $158, 200 Departmental data for the company's recent reporting period follow. Department Materials Personnel Manufacturing Packaging Total Employees 26 13 52 39 Square Feet 30,080 12, eee 66,080 12,080 120, eee Asset Values $ 9, 390 2,480 37,820 12,400 $62,880 130 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. Supervision expenses Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominato % of Total Department Materials Personnel Manufacturing Packaging Totals Utilities Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominato % of Total Department Materials Personnel Manufacturing Packaging Totals Insurance Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominato % of Total Department Materials Personnel Manufacturing Packaging Totals Required 1 Required 2 Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Supervision Utilities Insurance Total Materials Personnel Manufacturing Packaging Totals
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