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Woh Che Co. has four departments: materials, personnel, manufacturing, and packaging. In a recent month, the four departmentsComplete this question by entering your answers in the tabs below. Required 1 Required 2 Use this information to allocate eacRequired 1 Required 2 Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Su

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Answer #1

The above question is mainly based on allocation of cost on the basis of certain Cost driver . Please see below step by step answer . All source data has been updated in each sector

Department Allocation Base % of allocation base Cost to be allocated Allocated cost
Supervision Numerator(a) Denominator(b) % of total(c) ($)(d) ($)
Material No of Employees 22 110 20% 83600 16720
Personnel No of Employees 11 110 10% 83600 8360
Manufacturing No of Employees 44 110 40% 83600 33440
Packaging No of Employees 33 110 30% 83600 25080
Total Cost 83600
Source Data ( as per Question ( as per Question ( as per Question Derived(a)/(b)*100% ( as per Question Derived(c*d)
Department Allocation Base % of allocation base Cost to be allocated Allocated cost
Utilites Numerator(a) Denominator(b) % of total-C ($)-d ($)(c*d)
Material Square Foot 21000 105000 20% 61000 12200
Personnel Square Foot 5250 105000 5% 61000 3050
Manufacturing Square Foot 68250 105000 65% 61000 39650
Packaging Square Foot 10500 105000 10% 61000 6100
Total Cost 61000
Source Data ( as per Question ( as per Question ( as per Question Derived(a)/(b)*100% ( as per Question
Department Allocation Base % of allocation base Cost to be allocated Allocated cost
Insurance Numerator(a)-$ Denominator(b)-$ % of total-(C) ($)-(d) ($)-(c*d)
Material Asset Value($) 17750 71000 25% 28000 7000
Personnel Asset Value($) 2130 71000 3% 28000 840
Manufacturing Asset Value($) 36210 71000 51% 28000 14280
Packaging Asset Value($) 14910 71000 21% 28000 5880
Total Cost 28000
Source Data ( as per Question ( as per Question ( as per Question Derived(a)/(b)*100% ( as per Question

All below numbers are based on above Department wise , division wise  

Department Supervision$ Utilities$ Insurance $ Total-$
Material 16720 12200 7000 35920
Personnel 8360 3050 840 12250
Manufacturing 33440 39650 14280 87370
Packaging 25080 6100 5880 37060
Total Cost 83600 61000 28000 172600
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