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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 $ 83,700 Number of employees 62,000 square feet occupied 28,500 Value of assets in use $174,200 Departmental data for the company's recent reporting period follow. Department Materials Personnel Manufacturing Packaging Total Employees 24 12 48 36 Square Feet 28,750 11,500 57,500 17,250 115,000 Asset Values $ 7,200 2,880 37,440 24,480 $72,000 120 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. Cost to be Allocated Allocated Cost Allocation Base Number of employees Supervision expenses Department Materials Personnel Percent of Allocation Base Numerator Denominator % of Total 0 0 0 0 Manufacturing Packaging Totals 0 0 0 Utilities Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Department Materials 0 0 Personnel Manufacturing 0 0 0 0 Packaging Totals 0 Allocation Base Cost to be Allocated Allocated Cost Insurance Department Materials Personnel Percent of Allocation Base Numerator Denominator % of Total 0 0 OO OOO 0 Manufacturing Packaging Totals 0 0 0 0 Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Supervision Utilities Insurance Materials Personnel Manufacturing Packaging Totals 05 0 Total $ 0 0 0 0 S $ A 0
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