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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 $63,000 140 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 Personnel Manufacturing Packaging ooo Totals Utilities Allocation Base Cost to be Allocated Allocated Cost P ercent of Allocation Base Numerator Denominatot % of Total Department Materials Personnel Manufacturing Packaging 0 0 0 Totals Insurance Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Department Materials Personnel Manufacturing Packaging Totals Supervision Utilities Insurance Total $ Materials 0 Personnel Manufacturing Packaging Totals $ 0 $ 0 $ 0 $ 0
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