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Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Employees Square Feet Asset Values $ 6,000 Department Materials Personnel Manufacturing Packaging Total
Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Employees Square Feet Asset Values $ 6,000 Department Materials Personnel Manufacturing Packaging Total 27 9 63 51 150 Indirect Expense Supervision Utilities Insurance Total 25,000 5,000 55,000 15,000 100,000 1,200 37,800 15,000 $ 60,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Cost Allocation Base $ 82,500 Number of employees 50,000 Square feet occupied 22,500 Asset values $ 155,000 Allocate each of the three indirect expenses to the four departments.
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