Won Han Co. has four departments: materials, personnel, manufacturing, and packa
ID: 2513609 • Letter: W
Question
Won Han 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.
Use this information to allocate each of the three indirect expenses across the four departments. (Round your intermediate and final answers to the nearest whole dollar. Omit the "$" & "%" signs in your response.)
Prepare a summary table that reports the indirect expenses assigned to each of the four departments. (Round your intermediate and final answers to the nearest whole dollar. Omit the "$" sign in your response.)
Won Han 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.
Explanation / Answer
Answer
Percent of Allocation Base
Supervision expenses
Allocation Base
Numerator
Denomintator
% of total
Costs to be allocated
Allocated Cost
Departments:
Materials
Number of employees
17
114
15%
$ 74,000.00
$ 11,035.09
Personnel
Number of employees
4
114
4%
$ 74,000.00
$ 2,596.49
Manufacturing
Number of employees
64
114
56%
$ 74,000.00
$ 41,543.86
Packaging
Number of employees
29
114
25%
$ 74,000.00
$ 18,824.56
Totals
114
114
100%
$ 74,000.00
$ 74,000.00
Percent of Allocation Base
Utilities
Allocation Base
Numerator
Denomintator
% of total
Costs to be allocated
Allocated Cost
Departments:
Materials
SquareFeet
28000
87200
32%
$ 59,000.00
$ 18,944.95
Personnel
SquareFeet
4600
87200
5%
$ 59,000.00
$ 3,112.39
Manufacturing
SquareFeet
41000
87200
47%
$ 59,000.00
$ 27,740.83
Packaging
SquareFeet
13600
87200
16%
$ 59,000.00
$ 9,201.83
Totals
87200
87200
100%
$ 59,000.00
$ 59,000.00
Percent of Allocation Base
Insurance
Allocation Base
Numerator
Denomintator
% of total
Costs to be allocated
Allocated Cost
Departments:
Materials
Asset Values
82000
136900
60%
$ 16,900.00
$ 10,122.72
Personnel
Asset Values
1100
136900
1%
$ 16,900.00
$ 135.79
Manufacturing
Asset Values
38300
136900
28%
$ 16,900.00
$ 4,728.05
Packaging
Asset Values
15500
136900
11%
$ 16,900.00
$ 1,913.44
Totals
136900
136900
100%
$ 16,900.00
$ 16,900.00
Supervision
Utilities
Insurance
Total
Materials
$ 11,035.09
$ 18,944.95
$ 10,122.72
$ 40,102.76
Personnel
$ 2,596.49
$ 3,112.39
$ 135.79
$ 5,844.67
Manufacturing
$ 41,543.86
$ 27,740.83
$ 4,728.05
$ 74,012.74
Packaging
$ 18,824.56
$ 9,201.83
$ 1,913.44
$ 29,939.84
Totals
$ 74,000.00
$ 59,000.00
$ 16,900.00
$ 1,49,900.00
Percent of Allocation Base
Supervision expenses
Allocation Base
Numerator
Denomintator
% of total
Costs to be allocated
Allocated Cost
Departments:
Materials
Number of employees
17
114
15%
$ 74,000.00
$ 11,035.09
Personnel
Number of employees
4
114
4%
$ 74,000.00
$ 2,596.49
Manufacturing
Number of employees
64
114
56%
$ 74,000.00
$ 41,543.86
Packaging
Number of employees
29
114
25%
$ 74,000.00
$ 18,824.56
Totals
114
114
100%
$ 74,000.00
$ 74,000.00
Percent of Allocation Base
Utilities
Allocation Base
Numerator
Denomintator
% of total
Costs to be allocated
Allocated Cost
Departments:
Materials
SquareFeet
28000
87200
32%
$ 59,000.00
$ 18,944.95
Personnel
SquareFeet
4600
87200
5%
$ 59,000.00
$ 3,112.39
Manufacturing
SquareFeet
41000
87200
47%
$ 59,000.00
$ 27,740.83
Packaging
SquareFeet
13600
87200
16%
$ 59,000.00
$ 9,201.83
Totals
87200
87200
100%
$ 59,000.00
$ 59,000.00
Percent of Allocation Base
Insurance
Allocation Base
Numerator
Denomintator
% of total
Costs to be allocated
Allocated Cost
Departments:
Materials
Asset Values
82000
136900
60%
$ 16,900.00
$ 10,122.72
Personnel
Asset Values
1100
136900
1%
$ 16,900.00
$ 135.79
Manufacturing
Asset Values
38300
136900
28%
$ 16,900.00
$ 4,728.05
Packaging
Asset Values
15500
136900
11%
$ 16,900.00
$ 1,913.44
Totals
136900
136900
100%
$ 16,900.00
$ 16,900.00
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