Woh Che Co. has four departments: materials, personnel, manufacturing, and packa

Question

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.

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.

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.

M CH 24 Homework Dezto. mheducation.com/hm.tpx Carolina Evans Wild, Fundamental Accounting Principles, 21e Gold Standard: Accounting 2 Online Section ACCOUNTING Spring 2016 CH 24 Homework Instructions I help Question 1 (of 7) Save& Exit Submit Save & ExitSubmit value: 0.28 points Exercise 24-1 Departmental expense allocations LO P2 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 ExpenseCostAllocation Base Supervision 83 Utilities Insurance $ 83,500 Number of employees 60,000 Square feet occupied 27,500 Value of assets in use Total $171,000 Departmental data for the company's recent reporting period follow Department Employees Square Feet Asset Values Materials Personnel Manufacturing Packaging 20 10 40 30 10,000 120,000 30,000 40,000 $14,000 1,400 35,000 19,600 Total 100 200,000 70,000 (1) Use this information to allocate each of the three indirect expenses across the four departments upervision expenses Allocation Base ercent of Allocation Bas x Indirect Cost Allocated Cost Screenshot taken Numerator Denominator %Of Total Click to view Materials Personnel Copy to clipboard Packaging 0 6:41

Explanation / Answer

Answer 1.

28%

Answer 2.

Supervision Expenses Allocation Base Percentage of Allocation Base x Indirect Cost Allocated Cost Department Numbers of employees Numerator Denominator % of total Material 20 20 100 20% 83,500 16,700 Personnel 10 10 100 10% 83,500 8,350 Manufacturing 40 40 100 40% 83,500 33,400 Packaging 30 30 100 30% 83,500 25,050 Total 100 100% 83,500

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