Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 22-5 Departmental expense allocations LO P2 Woh Che Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the four departments

image text in transcribedimage text in transcribedimage text in transcribed

Exercise 22-5 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 $ 83,200 Number of employees Utilities 57,000 square feet occupied Insurance 26,000 Value of assets in use Total $166,200 Departmental data for the company's recent reporting period follow. Employees 45 Department Materials Personnel Manufacturing Packaging Total 9 81 Square Feet 42,500 8,500 102,000 17,000 170,000 Asset Values $ 6,700 2,680 36,180 21,440 $67,000 45 180 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. Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Supervision expenses Department Materials Personnel Manufacturing Packaging Totals Utilities Department Materials Personnel Manufacturing Packaging Totals Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Insurance Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Department Materials Personnel Manufacturing Packaging Totals 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. Supervision Utilities Insurance Total Materials Personnel Manufacturing Packaging Totals

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Performance Audit Department Of Highways Preconstruction And Construction Activities

Authors: Montana. Legislature. Office Of The Legi

1st Edition

1175365823, 978-1175365828

More Books

Students also viewed these Accounting questions

Question

Describe the problem that existed before concurrency control

Answered: 1 week ago

Question

Explain the importance of nonverbal messages.

Answered: 1 week ago

Question

Describe the advantages of effective listening.

Answered: 1 week ago

Question

Prepare an employment application.

Answered: 1 week ago