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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