10.00 points Exercise 9-5 Departmental expense allocations LO P2 Woh Che Co. has
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Question
10.00 points Exercise 9-5 Departmental expense allocations LO P2 Woh Che Co. has four departments: materials, personnel, manufacturing, and month, the four departments incurred three shared indirect expenses. The amounts of these indirect materials, personnel, manufacturing, and packaging. In a recent expenses and the bases used to allocate them follow Indirect Expense Cost Allocation Base $ 82,700 52,000 23,500 Number of employees Square feet occupied Value of assets in use Supervision Utilities Total $158,200 Departmental data for the company's recent reporting period follow Materials Personnel Manufacturing 26 13 52 39 30,000 $ 9,300 12,000 66,00037,820 12,000 12,400 2,480 Total 130 120,000 $62,000 1. Use this information to allocate each of the three indirect expenses across the four departments not SC DELL nas- cCIFeIF6I NAI N/A lade de lsteirn row ndon +SCher Banv non SurgExplanation / Answer
Percent of Allocation Base
Utilities
Allocation Base
Numerator
Denominator
% Total
X indirect Cost
Allocated Cost
Materials
30,000
30,000
120,000
25
52,000
13,000
Personnnel
12,000
12,000
120,000
10
52,000
5,200
Manufacturing
66,000
66,000
120,000
55
52,000
28,600
Packing
12,000
12,000
120,000
10
52,000
5,200
Totals
120,000
52,000
Percent of Allocation Base
Insurance
Allocation Base
Numerator
Denominator
% Total
X indirect Cost
Allocated Cost
Materials
9,300
9,300
62,000
15
23,500
3,525
Personnnel
2,480
2,480
62,000
4
23,500
940
Manufacturing
37,820
37,820
62,000
61
23,500
14,335
Packing
12,400
12,400
62,000
20
23,500
4,700
Totals
62,000
23,500
Supervision
Utilities
Insurance
Total
Materials
16,540
13,000
3,525
33,065
Personnnel
8,270
5,200
940
14,410
Manufacturing
33,080
28,600
14,335
76,015
Packing
24,810
5,200
4,700
34,710
Total
82,700
52,000
23,500
158,200
Percent of Allocation Base
Utilities
Allocation Base
Numerator
Denominator
% Total
X indirect Cost
Allocated Cost
Materials
30,000
30,000
120,000
25
52,000
13,000
Personnnel
12,000
12,000
120,000
10
52,000
5,200
Manufacturing
66,000
66,000
120,000
55
52,000
28,600
Packing
12,000
12,000
120,000
10
52,000
5,200
Totals
120,000
52,000
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