Question: Managerial Accounting 2.5 points eBook @ Hint E! Print Refe re nces Check my work Woh Che Co. has four departments: Materials, Personnel, Manufacturing, and
Managerial Accounting



2.5 points eBook @ Hint E! Print Refe re nces Check my work 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 39,000 $12,000 Personnel 10 19,500 1,600 Manufacturing 84 107,250 47,200 Packaging 66 29,250 19,200 Total 200 195,000 $80,000 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. Supervision expenses Allocation Base Percent of Allocation Base Cost to be Allocated | Allocated Cost Department Numerator Denominator % of Total Materials Personnel Manufacturing Packaging Totals Utilities Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Materials Personnel Manufacturing Packaging Totals Insurance Allocation Base Percent of Allocation Base Cost to be Allocated | Allocated Cost Department Numerator Denominator % of Total Materials Personnel Manufacturing Packaging Totals Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Materials Personnel Manufacturing Packaging ( Required 1
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
