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 transcribed
image text in transcribed
image 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 Supervision Utilities Insurance Total Cost Allocation Base $ 82,500 Number of employees 5e,eee Square feet occupied 22,500 Value of assets in use $155,000 Departmental data for the company's recent reporting period follow. Department Employees Square Feet Asset Values Materials 27 25,000 $ 6,000 Personnel 9 1,200 Manufacturing 63 55,000 37,800 Packaging 51 15,000 15,000 Total 150 100,000 $60,000 5,000 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 Cost to be Allocated Allocated Cost Cost to be Allocated Allocated Cost Use this information to allocate each of the three indirect expenses across the four departments. Supervision expenses Allocation Base Percent of Allocation Base Department Numerator Denominator % of Total Materials Personnel Manufacturing Packaging Totals Utilities AHocation Base Percent of Allocation Base Department Numerator Denominator M of Total Materials Personnel Manufacturing Packaging Totals Insurance Allocation Base Percent of Allocation Base Department Numerator Denominator of Total Materials Personnel Manufacturing Packaging Totals Cost to be Allocated Allocated Cost 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

More Books

Students also viewed these Accounting questions

Question

2. Are my sources up to date?

Answered: 1 week ago