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Exercise 9-5 (Algo) Departmental expense allocations LO P2 Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Square Feet Asset
Exercise 9-5 (Algo) Departmental expense allocations LO P2 Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Square Feet Asset Values Employees Materials 45 42,500 $ 6,700 Personnel 9 8,500 2,680 Manufacturing Packaging 81 102,000 36,180 Total 45 180 17,000 170,000 21,440 $ 67,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Cost Allocation Base $ 83,200 Number of employees Utilities Insurance Total 57,000 Square feet occupied 26,000 Asset values $ 166,200
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