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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
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 Expense Supervision Utilities Insurance Total Cost Allocation Base $ 84,500 Number of employees 70,000 Square feet occupied 32,500 Value of assets in use $187,000 Departmental data for the company's recent reporting period follow Employees Asset Values Department Materials Personnel Manufacturing Packaging Total Square Feet 40 10 84 39,000 19,500 107,250 29,250 195,000 $12,000 1,600 47,200 19,200 $80,000 200 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
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