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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 Supervision Utilities Insurance Total Cost Allocation Base $ 82,800 Number of employees 53,000 square feet occupied 24,000 Value of assets in use $159,800 Departmental data for the company's recent reporting period follow. Employees 28 Department Materials Personnel Manufacturing Packaging Total 63 Square Feet 39,000 6,500 65,000 19,500 130,000 Asset Values $12,600 3,150 31,500 15,750 $63,000 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 Percent of Allocation Base Numerator Denominator % of Total Supervision expenses Department Materials Personnel Manufacturing Packaging Totals Utilities Department Materials Personnel Manufacturing Packaging Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominato % of Total Totals Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominato % of Total Insurance Department Materials Personnel Manufacturing Packaging Totals Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Supervision Utilities Insurance Total Materials Personnel Manufacturing Packaging Totals
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