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Return to question Exercise 22-5 Departmental expense allocations LO P2 10 points Woh Che Co. has four departments: MaterialsUse this information to allocate each of the three indirect expenses across the four departments. Allocation Base Cost to benanana Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Materials Personn

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Answer #1
Supervision Allocation % of Allocation Base Cost to be Allocated
expenses Base Numerator Denominator % of Total allocated cost
Department
Materials 45 45 180 25% $ 83,200.00 $ 20,800.00
Personnel 9 9 180 5% $ 83,200.00 $   4,160.00
Manufacturing 81 81 180 45% $ 83,200.00 $ 37,440.00
Packaging 45 45 180 25% $ 83,200.00 $ 20,800.00
180 100% $ 83,200.00
Allocation % of Allocation Base Cost to be Allocated
Utilities Base Numerator Denominator % of Total allocated cost
Department
Materials 42500 42500 170000 25% $ 57,000.00 $ 14,250.00
Personnel 8500 8500 170000 5% $ 57,000.00 $   2,850.00
Manufacturing 102000 102000 170000 60% $ 57,000.00 $ 34,200.00
Packaging 17000 17000 170000 10% $ 57,000.00 $   5,700.00
170000 100% $ 57,000.00
Allocation % of Allocation Base Cost to be Allocated
Insurance Base Numerator Denominator % of Total allocated cost
Department
Materials 6700 6700 67000 10% $ 26,000.00 $   2,600.00
Personnel 2680 2680 67000 4% $ 26,000.00 $   1,040.00
Manufacturing 36180 36180 67000 54% $ 26,000.00 $ 14,040.00
Packaging 21440 21440 67000 32% $ 26,000.00 $   8,320.00
67000 100% $ 26,000.00
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