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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 $ 83,300 Number of employees 58,000 Square feet occupied 26,500 Value of assets in use $167,800 Departmental data for the company's recent reporting period follow. Department Materials Personnel Manufacturing Packaging Total Employees 38 19 76 57 Square Feet 54.000 18,000 81,000 27,000 Asset Values $ 6,800 3,400 37,400 20,400 190 180,000 $68,000 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. Allocation Base Cost to be Allocated Allocated Cost Supervision expenses Department Materials Percent of Allocation Base Numerator Denominator % of Total 0 0 0 0 Personnel Manufacturing Packaging Totals 0 0 0 Utilities Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 0 Department Materials Personnel Manufacturing Packaging 0 0 0 0 0 Totals 0 Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 0 Insurance Department Materials Personnel Manufacturing Packaging Totals 0 0 0 0 0 0 Required 1 Required 2 Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Supervision Utilities Insurance Total $ 0 0 Materials Personnel Manufacturing Packaging Totals 0 0 $ 0 $ 0 $ 0 $ 0
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