Question

·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 $ 83,200 Number of employees 57,000 Square feet occupied 26,000 Value of assets in use $166,200 Departmental data for the company's recent reporting period follow Employees Asset Values Department Materials Personnel Manufacturing Packaging Total Square Feet $ 6,700 2,680 36,180 21,440 $67,000 45 42,500 8,500 102,000 17,000 170,000 45 180 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 Complete this question by entering your answers in the tabs below

Answer 1

Supervision Expenses	Allocation base	Percent of allocation base			Cost to be allocated	Allocated cost
Department		Numerator	Denominator	% of total
Material	Number of employees	45	180	25%	$ 83,200.00	$      20,800.00
Personnel	Number of employees	9	180	5%	$ 83,200.00	$        4,160.00
Manufacturing	Number of employees	81	180	45%	$ 83,200.00	$      37,440.00
Packaging	Number of employees	45	180	25%	$ 83,200.00	$      20,800.00
Totals		180		100%		$      83,200.00
Utilities	Allocation base	Percent of allocation base			Cost to be allocated	Allocated cost
Department		Numerator	Denominator	% of total
Material	Square feet occupied	42500	170000	25%	$ 57,000.00	$      14,250.00
Personnel	Square feet occupied	8500	170000	5%	$ 57,000.00	$        2,850.00
Manufacturing	Square feet occupied	102000	170000	60%	$ 57,000.00	$      34,200.00
Packaging	Square feet occupied	17000	170000	10%	$ 57,000.00	$        5,700.00
Totals		170000		100%		$      57,000.00
Insurance	Allocation base	Percent of allocation base			Cost to be allocated	Allocated cost
Department		Numerator	Denominator	% of total
Material	Value of asset in use	6700	67000	10%	$ 26,000.00	$        2,600.00
Personnel	Value of asset in use	2680	67000	4%	$ 26,000.00	$        1,040.00
Manufacturing	Value of asset in use	36180	67000	54%	$ 26,000.00	$      14,040.00
Packaging	Value of asset in use	21440	67000	32%	$ 26,000.00	$        8,320.00
Totals		67000		100%		$      26,000.00

	Supervision	Utilities	Insurance	Total
Material	$     20,800.00	$ 14,250.00	$   2,600.00	$       37,650.00
Personnel	$       4,160.00	$    2,850.00	$   1,040.00	$          8,050.00
Manufacturing	$     37,440.00	$ 34,200.00	$ 14,040.00	$       85,680.00
Packaging	$     20,800.00	$    5,700.00	$   8,320.00	$       34,820.00
Totals	$     83,200.00	$ 57,000.00	$ 26,000.00	$    1,66,200.00