Return to question Exercise 22-5 Departmental expense allocations LO P2 10 points Woh Che Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the four departments incurred three shared indirect expenses. The amounts of these indirect expenses and the bases used to allocate them follow. Indirect Expense Supervision Utilities Insurance Total Cost Allocation Base $ 83,200 Number of employees 57,000 square feet occupied 26,000 Value of assets in use $ 166,200 Departmental data for the company's recent reporting period follow. Employees 45 Department Materials Personnel Manufacturing Packaging Total Square Feet 42,500 8,500 102,000 17,000 170,000 Asset Values $ 6,700 2,680 36,180 21,440 $67,000 1. Use this information to allocate each of the three indirect expenses across the four departments, 2. Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Use this information to allocate each of the three indirect expenses across the four departments. Allocation Base Cost to be Allocated Allocated Cost Supervision expenses Department Materials S $ Personnel Manufacturing Packaging Totals 45 9 81 45 Percent of Allocation Base Numerator Denominator % of Total 45 180 25.00% 9 180 5.00% 8 1 180 45.00% 45 180 25.00% 100.00% 832,000 832,000 832,000 832,000 4,160 374,400 208,000 180 832,000 Allocated Cost Utilities Cost to be Allocated Allocation Base Department Materials Personnel $ $ Percent of Allocation Base Numerator Denominator % of Total 170,000 25 680000.00% 170,000 X 680000.00% 102,000 25 408000.00% 170,000 25 680000.00% 2,448,000.00% 25 42,500 8,500 102,000 170,000 $ 323,000 57,000 57,000 57,000 57,000 Manufacturing 14,250 2,850 232,560,000 387,600,000 57,000 Packaging Totals Insurance Allocation Base Cost to be Allocated Allocated Cost $ $ Department Materials Personnel Manufacturing Percent of Allocation Base Numerator Denominator % of Total $ 6,700 $ 10 $ 67000.00% 6,700 67000.00% 36,180 361800.00% 21,440 10 214400.00% 710,200.00% 6,700 2,680 36,180 21,440 67,000 10 26,000 26,000 26,000 2,600 1,040 94,068,000 55,744,000 26,000 Packaging 26,000 Totals $ $ nanana Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Materials Personnel Manufacturing Packaging Supervision $ 20,800 4,160 37,440 20,800 $ 83,200 Utilities $ 14,250 2,850 34,200 5,700 $ 57,000 Insurance Total $ 2,600 $ 37,650 1,040 8,050 14,040 85,680 8,320 34,820 $ 26,000 166,200 Totals