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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: 40 31,000 $ 7,600 Personnel 8 15,500 2,280 Manufacturing Packaging 64 77,500 50,160 Total 48 160 31,000 155,000 15,960 $ 76,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation Indirect Expense Cost Allocation Base $ 84,100 Number of employees Supervision Utilities Insurance Total 66,000 Square feet occupied 30,500 Asset values $ 180,600 Allocate each of the three indirect expenses to the four departments. Supervision expenses Department Materials Personnel Manufacturing Packaging Totals Utilities Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost 0 0 0 0 0 Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost < Prev 8 of 11 Next >
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