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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 departments
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 $ 83,500 Number of employees 60,000 square feet occupied 27,500 Value of assets in use $171,000 Departmental data for the company's recent reporting period follow. Department Materials Personnel Manufacturing Packaging Total Employees 20 10 40 30 100 Square Feet 40,000 10,000 120,000 30,000 200,000 Asset Values $14,000 1,400 35,000 19,600 $70,000 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. Required 1 Required 2 Use this information to allocate each of the three indirect expenses across the four departments. Supervision expenses Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Department Materials Personnel Manufacturing Packaging Totals Utilities Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Department Materials Personnel Manufacturing Packaging Totals 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
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