Question

Please Fiil out the table

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	$	83,300	Number of employees
Utilities		58,000	Square feet occupied
Insurance		26,500	Value of assets in use
Total	$	167,800

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

Department	Employees				Square Feet				Asset Values
Materials		38				54,000				$	6,800
Personnel		19				18,000					3,400
Manufacturing		76				81,000					37,400
Packaging		57				27,000					20,400
Total		190				180,000				$	68,000

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.

Required 1

Use this information to allocate each of the three indirect expenses across the four departments.

Supervision expenses Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Number of employees Numerator Denominator % of Total Materials 38 20 0 Personnel 19 10 0 Manufacturing 76 76 0 0 Packaging 57 57 0 0 Totals 190 0 Utilities Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Materials 0 Personnel 0 Manufacturing 0 0 Packaging 0 0 Totals 0 Insurance Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Materials 0 Personnel 0 Manufacturing 0 0 Packaging 0 0 Totals 0

Required 2

Supervision Utilities Insurance Total Materials $0 Personnel 0 Manufacturing 0 Packaging 0 Totals $0 $0 $0 $0

Answer 1