Renton Company has two operating (production) departments supported by a number of service departments. Sales Cost...

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Renton Company has two operating (production) departments supported by a number of service departments. Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities 122,400 20,200 23,900 20,700 7,000 The company has also incurred the following indirect costs. Depreciation Maintenance Machining Department 724,404 327,600 Salaries Insurance Utilities $36,700 5,500 2,000 Depreciation Maintenance Office expenses Indirect costs are allocated as follows: 13,800 29,400 71,100 Assembly Department $356,796 121,200 85,700 11,000 13,900 11,500 4,700 • salaries on the basis of sales, • office expenses on the basis of the number of employees, • insurance, utilities, depreciation, and maintenance on the basis of square footage. 52 Additional information about the departments follows: Department Square Footage Number of employees Machining 14,535 78 Assembly 4,845 What is the indirect expense for Office Expenses to the Machining Dept.? Renton Company has two operating (production) departments supported by a number of service departments. Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities 122,400 20,200 23,900 20,700 7,000 The company has also incurred the following indirect costs. Depreciation Maintenance Machining Department 724,404 327,600 Salaries Insurance Utilities $36,700 5,500 2,000 Depreciation Maintenance Office expenses Indirect costs are allocated as follows: 13,800 29,400 71,100 Assembly Department $356,796 121,200 85,700 11,000 13,900 11,500 4,700 • salaries on the basis of sales, • office expenses on the basis of the number of employees, • insurance, utilities, depreciation, and maintenance on the basis of square footage. 52 Additional information about the departments follows: Department Square Footage Number of employees Machining 14,535 78 Assembly 4,845 What is the indirect expense for Office Expenses to the Machining Dept.?

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First lets calculate the total number of employees in both departments Total Number of Employees ... View the full answer