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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 Allocation Base Supervision $ 83,600 Number of employees Utilities 61,000 square feet occupied Insurance 28,000 Value of assets in use Total $172,600 Cost Departmental data for the company's recent reporting period follow Department Materials Personnel Manufacturing Packaging Total Employees 22 11 44 Square Feet 21,000 5,250 68,250 10,500 105,800 Asset Values $17,750 2,130 36,210 14,910 $71,000 110 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 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 Utilities Department Materials Personnel Manufacturing Packaging Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Totals Insurance Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Department Materials Personnel Manufacturing Packaging Totals (Required Required 2 > 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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