Question
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 | $ | 84,200 | Number of employees |
Utilities | 67,000 | Square feet occupied | |
Insurance | 31,000 | Value of assets in use | |
Total | $ | 182,200 | |
Departmental data for the companys recent reporting period follow.
Department | Employees | Square Feet | Asset Values | |||||||||
Materials | 34 | 41,250 | $ | 11,550 | ||||||||
Personnel | 17 | 8,250 | 3,080 | |||||||||
Manufacturing | 68 | 90,750 | 46,200 | |||||||||
Packaging | 51 | 24,750 | 16,170 | |||||||||
Total | 170 | 165,000 | $ | 77,000 | ||||||||
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.
Complete this question by entering your answers in the tabs below.
- Required 1
- Required 2
Use this information to allocate each of the three indirect expenses across the four departments.
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Prepare a summary table that reports the indirect expenses assigned to each of the four departments.
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Can you please make sure the (Cost to be Allocated) is answered, it is missing from the last expert that solved it, thank you!
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