Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Q4. Woh Che Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the four departments incurred three shared indirect expenses. The
Q4.
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 | Cost | Allocation Base | |
Supervision | $ | 84,200 | Number of employees |
Utilities | 67,000 | Square feet occupied | |
Insurance | 31,000 | Value of assets in use | |
Total | $ | 182,200 | |
Departmental data for the companys recent reporting period follow.
Department | Employees | Square Feet | Asset Values | |||||||||
Materials | 34 | 41,250 | $ | 11,550 | ||||||||
Personnel | 17 | 8,250 | 3,080 | |||||||||
Manufacturing | 68 | 90,750 | 46,200 | |||||||||
Packaging | 51 | 24,750 | 16,170 | |||||||||
Total | 170 | 165,000 | $ | 77,000 | ||||||||
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.
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. Allocation Base Cost to be Allocated Allocated Cost Supervision expenses Department Percent of Allocation Base Numerator Denominator % of Total 0 Materials Personnel Manufacturing Packaging Totals Utilities Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Department Materials Personnel Manufacturing Packaging Totals Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Insurance Department Materials Personnel o 0 0 Manufacturing Packaging Totals o Required 1 Required 2 >Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started