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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.
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. Cost Indirect Expense Supervision Utilities Insurance Total Allocation Base $ 84,500 Number of employees 70,000 square feet occupied 32,500 Value of assets in use $187,000 Departmental data for the company's recent reporting period follow. Department Materials Personnel Manufacturing Packaging Total Employees 40 10 84 66 200 Square Feet 39,000 19,500 107,250 29,250 195,00 Asset Values $12,000 1,600 47,200 19,200 $80,000 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 Luis U dL UIT LU dilucale edil Ui lile lilee mullell expenses dCiUSS lile luui 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 Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Department Materials Personnel Manufacturing Packaging Totals Allocation Base Cost to be Allocated Allocated Cost Insurance Department Materials Percent of Allocation Base Numerator Denominator % of Total Personnel Manufacturing Packaging Totals Required 1 Required 2 Prepare a summary table that reports the indirect expenses assigned to each of th Supervision Utilities Insurance Total Materials Personnel Manufacturing Packaging TotalsStep by Step Solution
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