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5 Woh Che Co. has four departments: Materials. Personnel, Manufacturing, and Packaging. In a recent month, the four departmen
Required 1 Required 2 Book Use this information to allocate each of the three indirect expenses across the four departments.
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Supervision expenses Allocation Base Percent of Allocation Base Indirect Cost Allocated Cost
Department Number of employees Numerator    Denominator    % of Total
Materials Number of employees 45 180 25% 83200 20800
Personnel Number of employees 9 180 5% 83200 4160
Manufacturing Number of employees 81 180 45% 83200 37440
Packaging Number of employees 45 180 25% 83200 20800
Totals 180 100% 83200
Utilities Allocation Base Percent of Allocation Base Indirect Cost Allocated Cost
Department Square feet occupied Numerator Denominator % of Total
Materials Square feet 42500 170000 25% 57000 14250
Personnel Square feet 8500 170000 5% 57000 2850
Manufacturing Square feet 102000 170000 60% 57000 34200
Packaging Square feet 17000 170000 10% 57000 5700
Totals 170,000 100% 57000
Insurance Allocation Base Percent of Allocation Base Cost to be allocated Allocated Cost
Department Value of assets in use Numerator Denominator % of Total
Materials Assets value 6700 67000 10% 26000 2600
Personnel Assets value 2680 67000 4% 26000 1040
Manufacturing Assets value 36180 67000 54% 26000 14040
Packaging Assets value 21440 67000 32% 26000 8320
Totals 67000 100% 26000
2
Supervision Utilities Insurance Total
Materials 20800 14250 2600 37650
Personnel 4160 2850 1040 8050
Manufacturing 37440 34200 14040 85680
Packaging 20800 5700 8320 34820
Totals 83200 57000 26000 166200
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