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Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Square Feet Asset Values Materials Employees 20 40,000 $ 14,000 Personnel
Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Square Feet Asset Values Materials Employees 20 40,000 $ 14,000 Personnel 10 10,000 Manufacturing Packaging 40 120,000 1,400 35,000 Total 30 100 30,000 200,000 19,600 $ 70,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Insurance Total Cost Allocation Base $ 83,500 Number of employees 60,000 Square feet occupied 27,500 Asset values. $ 171,000 Allocate each of the three indirect expenses to the four departments.
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