Exercise 22-5 (Algo) Departmental expense allocations LO P2 Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Employees Square Feet Asset Values Materials 36 49,000 $ 6,400 Personnel 9 14,000 3,840 Manufacturing 66 56,000 32,640 Packaging 39 Total 150 21,000 140,000 21,120 $ 64,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Cost Allocation Base $ 82,500 Number of employees Utilities Insurance Total ces 54,000 Square feet occupied 24,500 Asset values $161,000 Allocate each of the three indirect expenses to the four departments. Supervision expenses Department Materials: Personnel Manufacturing Packaging Totals Utilities Department Materials Personnel Manufacturing Packaging Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Allocate each of the three indirect expenses to the four departments. Supervision expenses Allocation Base Department Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Materials Personnel Manufacturing Packaging Totals Utilities Allocation Base Department Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Materials Personnel Manufacturing Packaging Totals Insurance Department Materials Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Personnel Manufacturing Packaging Totals