Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribed

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. Cost Indirect Expense Supervision Utilities Insurance Total Allocation Base $ 82,000 Number of employees 59,000 square feet occupied 27,000 Value of assets in use $168,000 Departmental data for the company's recent reporting period follow. Department Materials Personnel Manufacturing Packaging Total Employees 58 8 70 64 200 Square Feet 66,500 9,500 95,000 19,000 190,000 Asset Values $10, 350 4,140 38,640 15,870 $69,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use this information to allocate each of the three indirect expenses across the four departments. Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost 0 Supervision expenses Department Materials Personnel Manufacturing Packaging Totals 0 0 0 0 0 0 Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost 0 Utilities Department Materials Personnel Manufacturing Packaging Totals 0 0 0 0 0 0 Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost 0 Insurance Department Materials Personnel Manufacturing Packaging Totals 0 0 0 0 0 0 Required 1 Required 2 Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Supervision Utilities Insurance Total $ 0 0 Materials Personnel Manufacturing Packaging Totals 0 0 0 S 0 $ 0 $ 0 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Standards And Audits For Ethics Management Systems The European Perspective

Authors: Josef Wieland

1st Edition

3642072925, 978-3642072925

More Books

Students also viewed these Accounting questions