question 1:

Jessica Porter works in both the jewelry department and the cosmetics department of a retail store. She assists customers in both departments and arranges and stocks merchandise in both departments. The store allocates her $13,900 annual wages between the two departments based on the time worked in the two departments in each two-week pay period. On average, Jessica reports the following hours and activities spent in the two departments. Activities Hours Selling in jewelry department 49.0 Arranging and stocking merchandise in jewelry department 10.0 Selling in cosmetics department 16.0 Arranging and stocking merchandise in cosmetics department 11.0 Idle time spent waiting for a customer to enter one of the departments 8.0 Allocate Jessicas annual wages between the two departments.

question 2:

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	$	82,800	Number of employees
Utilities		53,000	Square feet occupied
Insurance		24,000	Value of assets in use
Total	$	159,800

Departmental data for the companys recent reporting period follow.

Department	Employees				Square Feet				Asset Values
Materials		28				39,000				$	12,600
Personnel		7				6,500					3,150
Manufacturing		63				65,000					31,500
Packaging		42				19,500					15,750
Total		140				130,000				$	63,000

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.