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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 ExpenseCost Allocation Base Utilities Insurance S 83,600 61,000 28,000 Number of employees Square feet occupied Value of assets in use Total $172,600 Departmental data for the company's recent reporting period follow. Department EmployeesSquare Feet Asset Values Materials Personnel Manufacturing Packaging 5,250 68,250 10,500 21,000 17,750 2,130 36,210 14,910 Total 110 105,000 71,000 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 Dnominator % of Total Materials Personnel Manufacturing Packaging Totals ilities Allocation Base ercent of Allocation Base x Indirect Cost Allocated Cost Department Numerator Denominator % of Total Materials Personnel Manufacturing Packaging Totals nsurance Allocation Base ercent of Allocation Bas x Indirect Cost Allocated Cost Department Numerator Dnominator % of Total Materials Personnel Manufacturing Packaging Totals
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