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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 Cost 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

Departmental data for the companys recent reporting period follow.

Department Employees Square Feet Asset Values
Materials 22 21,000 $ 17,750
Personnel 11 5,250 2,130
Manufacturing 44 68,250 36,210
Packaging 33 10,500 14,910
Total 110 105,000 $ 71,000

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.

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