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Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Employees Square Feet Asset Values Materials 24 28,750 $ 7,200 Personnel
Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Employees Square Feet Asset Values Materials 24 28,750 $ 7,200 Personnel 12 11,500 2,880 Manufacturing 48 57,500 37,440 Packaging 36 Total 120 17,250 115,000 24,480 $ 72,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Insurance Cost $ 83,700 Number of employees Allocation Base 62,000 Square feet occupied 28,500 Asset values $ 174,200 Total 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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