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

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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		35		47,250		$	14,800
Personnel		7		13,500			4,440
Manufacturing		63		60,750			37,000
Packaging		35		13,500			17,760
Total		140		135,000		$	74,000

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 Required 2 Use this information to allocate each of the three indirect expenses across the four departments. Cost

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a summary table that reports

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Answer 1

Answer #1

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--Requirement 1

Supervision expenses	Allcocation base	Numerator	Denominator	% of total	Cost to be allocated	Allocated Cost
*Department:*	No. of employees
Material	No. of employees	35	140	25%	$83,900	$20,975
Personnel	No. of employees	7	140	5%	$83,900	$4,195
Manufacturing	No. of employees	63	140	45%	$83,900	$37,755
Packaging	No. of employees	35	140	25%	$83,900	$20,975
Totals		140		100%		$83,900

Utilities	Allcocation base	Numerator	Denominator	% of total	Cost to be allocated	Allocated Cost
*Department:*	Square feet
Material	Square feet	47250	135000	35%	$64,000	$22,400
Personnel	Square feet	13500	135000	10%	$64,000	$6,400
Manufacturing	Square feet	60750	135000	45%	$64,000	$28,800
Packaging	Square feet	13500	135000	10%	$64,000	$6,400
Totals		135000		100%		$64,000

Insurance	Allcocation base	Numerator	Denominator	% of total	Cost to be allocated	Allocated Cost
*Department:*	Value of Asset in use
Material	Value of Asset in use	$14,800	74000	20%	$29,500	$5,900
Personnel	Value of Asset in use	$4,440	74000	6%	$29,500	$1,770
Manufacturing	Value of Asset in use	$37,000	74000	50%	$29,500	$14,750
Packaging	Value of Asset in use	$17,760	74000	24%	$29,500	$7,080
Totals		$74,000		100%		$29,500

--Requirement 2

	Supervision expenses	Utilities	Insurance	TOTAL
Material	$20,975	$22,400	$5,900	$49,275
Personnel	$4,195	$6,400	$1,770	$12,365
Manufacturing	$37,755	$28,800	$14,750	$81,305
Packaging	$20,975	$6,400	$7,080	$34,455
Totals	$83,900	$64,000	$29,500	$177,400

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Answer 2

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