Exercise 9-5 Departmental expense allocations LO P2 Woh Che Co. has four departments: materials, personnel, manufacturing,...

Exercise 9-5 Departmental expense allocations LO P2

Indirect Expense		Cost	Allocation Base
Supervision	$	84,100	Number of employees
Utilities		66,000	Square feet occupied
Insurance		30,500	Value of assets in use
Total	$	180,600

Departmental data for the company’s recent reporting period follow.

Department	Employees		Square Feet		Asset Values
Materials		40		31,000		$	7,600
Personnel		8		15,500			2,280
Manufacturing		64		77,500			50,160
Packaging		48		31,000			15,960
Total		160		155,000		$	76,000

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.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Exercise 22-5 Departmental expense allocations LO P2 Woh Che Co. has four departments: materials, personnel, manufacturing,...

Exercise 22-5 Departmental expense allocations LO P2 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 Cost Allocation Base Supervision $ 82,800 Number of employees Utilities 53,000 Square feet occupied Insurance 24,000 Value of assets in use Total $ 159,800 Departmental data for the company’s recent reporting period follow. Department...

Woh Che Co. has four departments: materials, personnel, manufacturing, and packaging. In a recent month, the...

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 Cost Allocation Base Supervision $ 82,600 Number of employees Utilities 51,000 Square feet occupied Insurance 23,000 Value of assets in use Total $ 156,600 Departmental data for the company’s recent reporting period follow. Department Employees Square Feet Asset Values Materials 24...

Woh Che Co. has four departments: materials, personnel, manufacturing, and packaging. In a recent month, the...

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 Cost Allocation Base Supervision $ 83,600 Number of employees Utilities 61,000 Square feet occupied Insurance 28,000 Value of assets in use Total $ 172,600 Departmental data for the company’s recent reporting period follow. Department Employees Square Feet Asset Values Materials 22...

Woh Che Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the...

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 Cost Allocation Base Supervision $ 83,200 Number of employees Utilities 57,000 Square feet occupied Insurance 26,000 Value of assets in use Total $ 166,200 Departmental data for the company’s recent reporting period follow. Department Employees Square Feet Asset Values Materials 45...

Woh Che Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the...

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 Cost Allocation Base Supervision $ 82,700 Number of employees Utilities 52,000 Square feet occupied Insurance 23,500 Value of assets in use Total $ 158,200 Departmental data for the company’s recent reporting period follow. Department Employees Square Feet Asset Values Materials 26...

Woh Che Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the...

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 Cost Allocation Base Supervision $ 83,700 Number of employees Utilities 62,000 Square feet occupied Insurance 28,500 Value of assets in use Total $ 174,200 Departmental data for the company’s recent reporting period follow. Department Employees Square Feet Asset Values Materials 24...

Woh Che Co. has four departments: materials, personnel, manufacturing, and packaging. In a recent month, the...

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 Cost Allocation Base Supervision $ 84,500 Number of employees Utilities 70,000 Square feet occupied Insurance 32,500 Value of assets in use Total $ 187,000 Departmental data for the company’s recent reporting period follow. Department Employees Square Feet Asset Values Materials 40...

Woh Che Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the...

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 Cost Allocation Base Supervision $ 82,600 Number of employees Utilities 51,000 Square feet occupied Insurance 23,000 Value of assets in use Total $ 156,600 Departmental data for the company’s recent reporting period follow. Department Employees Square Feet Asset Values Materials 24...

Woh Che Co. has four departments: materials, personnel, manufacturing, and packaging. In a recent month, the...

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 Cost Allocation Base Supervision $ 82,500 Number of employees Utilities 50,000 Square feet occupied Insurance 22,500 Value of assets in use Total $ 155,000 Departmental data for the company’s recent reporting period follow. Department Employees Square Feet Asset Values Materials 27...

2. Woh Che Co. has four departments: materials, personnel, manufacturing, and packaging. In a recent month,...

2. 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 Cost Allocation Base Supervision $ 83,900 Number of employees Utilities 64,000 Square feet occupied Insurance 29,500 Value of assets in use Total $ 177,400 Departmental data for the company’s recent reporting period follow. Department Employees Square Feet Asset Values Materials...

Subjects