Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 $ 84,200 Number of employees 67,000 square feet occupied 31,000 Value of assets in use $182,200 5 Departmental data for the company's recent reporting period follow. Employees Department Materials Personnel Manufacturing Packaging Total 17 68 51 170 Square Feet 41,250 8.250 90.750 24.750 165,000 Asset Values $11,550 3,080 46,200 16,170 $77,000 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. Use this information to allocate each of the three Indirect expenses across the four departments. Supervision expenses Department Materials Personnel Manufacturing Packaging Totals Utilities Department Materials Personnel Manufacturing Packaging Allocation Base Percent of Allocation Baso Cost to be Allocated Allocated Cost Number of employees Numerator Denominator % of Total 34 34 170 20.00% $ 84,200 $ 16,840 17 17 170 10.00% 84,200 8,420 68 68 170 40.00% 84,200 33,680 51 51 170 30.00% 84.200 25,260 170 100.00% $ 84,200 Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator , % of Total 0 0 0 0 0 0 Totals 0 Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 0 Insurance Department Materials Personnel Manufacturing Packaging Totals 0 0 0 0 0 0 Required 1 Required 2 Prepare a summary table that reports the indirect expens Supervision Utilities Insurance Total Materials $ 0 Personnel 0 0 Manufacturing Packaging Totals 0 $ 0 $ 0 $ o $ 0 DAT 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Ethics A Practical Approach

Authors: Howard J Levine

1st Edition

0692112898, 9780692112892

More Books

Students also viewed these Accounting questions

Question

Explain the concept of employment at will.

Answered: 1 week ago

Question

Discuss compensation for sales representatives.

Answered: 1 week ago

Question

Explain termination of employment.

Answered: 1 week ago