Exercise 9-5 (Algo) Departmental expense allocations LO P2

Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows.

Department	Employees	Square Feet	Asset Values
Materials	34	41,250	$ 11,550
Personnel	17	8,250	3,080
Manufacturing	68	90,750	46,200
Packaging	51	24,750	16,170
Total	170	165,000	$ 77,000

The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases.

Indirect Expense	Cost	Allocation Base
Supervision	$ 84,200	Number of employees
Utilities	67,000	Square feet occupied
Insurance	31,000	Asset values
Total	$ 182,200

Allocate each of the three indirect expenses to the four departments.

Allocate each of the three indirect expenses to the four departments