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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
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 $ 83,000 Number of employees 55,000 Square feet occupied 25,000 Value of assets in use $163,000 Departmental data for the company's recent reporting period follow. Department Employees Square Feet Asset Values Materials 40 60,000 $ 9,750 Personnel 8 Manufacturing 64 7,500 67,500 1,300 33,800 Packaging 48 15,000 20,150 Total 160 150,000 $65,000 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. Supervision expenses Department Materials Personnel Manufacturing Packaging Totals Utilities Department Materials Personnel Manufacturing Packaging Totals Insurance Department Materials Personnel Manufacturing Packaging Totals Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost 0 0 0 0 0 0 0 Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost 0 0 0 0 0 0 0 Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total 0 0 0 0 0 0 0 < Required 1 Required 2 >
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