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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 Allocation Base Cost 84,300 Number of employees 68,000 Square feet occupied 31,500 Value of assets in use Insurance Total $183,800 Departmental data for the company's recent reporting period follow. Department Employees Asset Values $11,700 Square Feet 52,500 17,500 78,750 26,250 Materials 36 Personnel Manufacturing Packaging 3,900 47,580 14,820 72 63 Total 180 $78,000 175,000 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 Required 1 Required 2 Use this information to allocate each of the three indirect expenses across the four departments. Supervision expenses Department Percent of Allocation Base Numerator Denominator % of Total Allocation Base Cost to be Allocated Allocated Cost 84,300 Materials Personnel Manufacturing Packaging Totals $ 84,300 Percent of Allocation Base Numerator Denominator % of Total Utilities Allocation Base Cost to be Allocated Allocated Cost Department Materials Personnel Manufacturing Packaging Totals Insurance Percent of Allocation Base Numerator Denominator % of Total Allocation Base Cost to be Allocated Allocated Cost Department Materials Personnel Manufacturing Packaging Totals Required 1 Required 2 Required 1 Required 2 a summary table that reports the indirect expenses assigned to each of the four departments Prepare Supervision Utilities Insurance Total Materials Personnel Manufacturing Packaging 0 Totals S 0 Required 2 Required 1
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