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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 Cost Allocation Base $ 83,900 Number of employees 64,000 square feet occupied 29,500 Value of assets in use $177,400 Total Departmental data for the company's recent reporting period follow. Department Materials Personnel Manufacturing Packaging Total Employees 35 7 63 35 Square Feet 47,250 13,500 60,750 13,500 135,000 Asset Values $14,800 4,440 37,000 17,760 $ 74,000 140 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. Use this information to allocate each of the three indirect expenses across the four departments. Allocation Base Cost to be Allocated Allocated Cost Supervision expenses Department Materials Percent of Allocation Base Numerator Denominator % of Total Personnel Manufacturing Packaging Totals Allocation Base Cost to be Allocated Allocated Cost Utilities Department Materials Percent of Allocation Base Numerator Denominator % of Total Personnel Manufacturing Packaging Totals Insurance Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Department Materials Personnel Manufacturing Packaging Totals Required 1 Required 2 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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