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. Indirect Expense Supervision Utilities Insurance Total Cost Allocation Base $ 82,700 Number of employees 52,000 square feet occupied 23,500 Value of assets in use $ 158,200 Departmental data for the company's recent reporting period follow. Employees 26 Department Materials Personnel Manufacturing Packaging Total Square Feet 30,000 12,000 66,000 12,000 120,000 Asset Values $ 9,300 2,480 37,820 12,400 $62,000 130 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. Allocation Base Cost to be Allocated Allocated Cost Supervision expenses Department Percent of Allocation Base Numerator Denominator % of Total Materials 0 Allocation Base Cost to be Allocated Allocated Cost Personnel Manufacturing Packaging Totals Utilities Department Materials Personnel Manufacturing Packaging Percent of Allocation Base Numerator Denominato % of Total 01 Totals Insurance Allocation Base Cost to be Allocated Allocated Cost P ercent of Allocation Base Numerator Denominato % of Total Department Materials Personnel Manufacturing Packaging Totals Supervision Utilities Insurance Total Materials Personnel Manufacturing Packaging Totals Snc 0 % 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

Compliance Audits And Plans For Healthcare

Authors: Cherilyn G. Murer, Michael A. Murer, Lyndean Lenhoff Brick, Healthcare Financial Management Association (U. S.)

1st Edition

0070444625, 978-0070444621

More Books

Students also viewed these Accounting questions

Question

Write formal and informal proposals.

Answered: 1 week ago

Question

Describe the components of a formal report.

Answered: 1 week ago

Question

Write formal and informal reports.

Answered: 1 week ago