Question
Exercise 9-5 (Algo) Departmental expense allocations LO P2 Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Employees Materials 36
Exercise 9-5 (Algo) Departmental expense allocations LO P2 Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Employees Materials 36 Square Feet 49,000 Asset Values $ 6,400 Personnel 9 14,000 3,840 Manufacturing Packaging 66 56,000 32,640 Total 39 150 21,000 140,000 21,120 $ 64,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Insurance Total Cost $ 82,500 Number of employees Allocation Base 54,000 Square feet occupied 24,500 Asset values $ 161,000 Allocate each of the three indirect expenses to the four departments. Supervision expenses Department Materials Personnel Manufacturing Packaging Totals Utilities Department Materials Personnel Manufacturing Packaging Totals Insurance Department Materials Personnel Manufacturing Packaging Totals Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total
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