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Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Employees Square Feet Asset Values Materials 22 21,000 $ 17,750 Personnel
Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Employees Square Feet Asset Values Materials 22 21,000 $ 17,750 Personnel 11 5,250 2,130 Manufacturing Packaging 44 68,250 36,210 33 10,500 14,910 Total 110 105,000 $ 71,000 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 $ 83,600 Number of employees Allocation Base 61,000 Square feet occupied 28,000 Asset values $ 172,600 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 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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