Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 24-5 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 24-5 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 $ 83,700 Number of employees 62,000 square feet occupied 28,500 Value of assets in use $174,200 Departmental data for the company's recent reporting period follow. Employees Department Materials Personnel Manufacturing Packaging Total Square Feet 28,750 11,500 57,500 17,250 115,000 Asset Values $ 7,200 2,880 37,440 24,480 $72,000 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. Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominato % of Total Supervision expenses Department Materials Personnel Manufacturing Packaging Totals Utilities Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominato % of Total Department Materials Personnel Manufacturing Packaging Totals Insurance Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominato % of Total Department Materials Personnel Manufacturing Packaging Totals Required 1 Required 2 > 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 S 0S 0S 0S 0

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

Financial accounting

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom

9th edition

978-0132751216, 132751127, 132751216, 978-0132751124

More Books

Students also viewed these Accounting questions