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

Cost

Allocation Base

Supervision

$

82,000

Number of employees

Utilities

59,000

Square feet occupied

Insurance

27,000

Value of assets in use

Total

$

168,000

Departmental data for the companys recent reporting period follow.

Department

Employees

Square Feet

Asset Values

Materials

58

66,500

$

10,350

Personnel

8

9,500

4,140

Manufacturing

70

95,000

38,640

Packaging

64

19,000

15,870

Total

200

190,000

$

69,000

1.

Use this information to allocate each of the three indirect expenses across the four departments.

Supervision expenses	Allocation Base	Percent of Allocation Base			x Indirect Cost	Allocated Cost
Department		Numerator	Denominator	% of Total
Materials
Personnel
Manufacturing
Packaging
Totals
Utilities	Allocation Base	Percent of Allocation Base			x Indirect Cost	Allocated Cost
Department		Numerator	Denominator	% of Total
Materials
Personnel
Manufacturing
Packaging
Totals
Insurance	Allocation Base	Percent of Allocation Base			x Indirect Cost	Allocated Cost
Department		Numerator	Denominator	% of Total
Materials
Personnel
Manufacturing
Packaging
Totals

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