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Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Employees Square Feet Asset Values Materials 26 30,000 $ 9,300 Personnel 13
Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Employees Square Feet Asset Values Materials 26 30,000 $ 9,300 Personnel 13 12,000 2,480 Manufacturing 52 66,000 37,820 Packaging 39 12,000 12,400 Total 130 120,000 $ 62,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Cost Allocation Base Supervision Utilities Insurance $ 82,700 Number of employees 52,000 Square feet occupied 23,500 Asset values $ 158,200 Total Allocate each of the three indirect expenses to the four departments. Allocate each of the three indirect expenses to the four departments. Supervision expenses Department Materials Personnel Manufacturing Packaging Totals Utilities Department Materials Personnel Manufacturing Packaging Totals Insurance Department Materials Personnel Manufacturing Packaging Totals Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total
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