Exercise 9-5 Departmental Expense Allocations LO P2

Exercise 9-5 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 Allocation Base Cost Expense Supervision 83,800 Number of employees 63,000 Square feet occupied 29,000 Value of assets in use $175,800 Utilities Insurance Total Departmental data for the company's recent reporting period follow. Square Feet 37,500 6,250 68,750 12,500 Employees Asset Values Department $10,950 Materials 26 Personnel Manufacturing Packaging 13 3,650 38,690 19,710 $73,000 52 39 Total 130 125,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use this information to allocate each of the three indirect expenses across the four departments. Percent of Allocation Base Supervision expenses Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Materials Personnel Manufacturing Packaging Totals Percent of Allocation Base Utilities Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Department Materials Personnel Manufacturing Packaging Totals Percent of Allocation Base Cost to be Allocated Allocated Cost Insurance Allocation Base Numerator Denominator % of Total Department Materials Personnel Manufacturing Packaging Totals