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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

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 Cost Allocation Base
Supervision $ 82,700 Number of employees
Utilities 52,000 Square feet occupied
Insurance 23,500 Value of assets in use
Total $ 158,200

Departmental data for the companys recent reporting period follow.

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

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.

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