Question: PLEASE DO REQUIREMENT 1 & 2 Woh Che Co. has four departments: materials, personnel, manufacturing, and packaging. In a recent month, the four departments incurred

PLEASE DO REQUIREMENT 1 & 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 $ 83,300 Number of employees
Utilities 58,000 Square feet occupied
Insurance 26,500 Value of assets in use
Total $ 167,800

Departmental data for the companys 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.

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