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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 $ 82,500 Number of employees 50,000 square feet occupied 22,500 Value of assets in use $ 155,000 Departmental data for the company's recent reporting period follow. Department Materials Personnel Manufacturing Packaging Total Employees 27 9 63 51 150 Square Feet 25,000 5,000 55,000 15,000 100,000 Asset Values $ 6,000 1,200 37,800 15,000 $60,000 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 Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Supervision expenses Department Materials Personnel Manufacturing Packaging Totals Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Utilities Department Materials Personnel Manufacturing Packaging Totals Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Insurance Department Materials Personnel Manufacturing Packaging Totals
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