Won Han Co. has four departments: materials, personnel, manufacturing, and packa

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.)

Indirect Expense Cost Allocation Base   Supervision $ 70,000 Number of employees   Utilities 64,000 Square feet occupied   Insurance 17,000 Value of assets in use      Total $ 151,000   

Explanation / Answer

Ans. 1 Supervision Expenses: Number of percentage of Indirect Allocated Department (a) employees (b) employees in total © cost (d) Cost (c*d) Materials 18 18/123 * 100   = 14.634% 70000 10244 Personnel 8 8/123*100       =   6.504% 70000 4553 Manufacturing 65 65/123*100     = 52.846% 70000 36992 Packaging 32 32/123*100     = 26.016% 70000 18211 Total 123 100% 70000 2 Utilities: Sqare feet percentage of Indirect Allocated Department (a) occupied (b) sq. feet in total © cost (d) Cost (c*d) Materials 29000 29000/97200 * 100 = 29.835% 64000 19094.4 Personnel 4700 4700/97200 * 100    = 4.835% 64000 3094.4 Manufacturing 50000 50000/97200 * 100 = 51.44% 64000 32921.6 Packaging 13500 13500/97200 * 100 = 13.89% 64000 8889.6 Total 97200 100% 64000 3 Insurance: Value of assets percentage of Indirect Allocated Department (a) in use (b) assets values in total © cost (d) Cost (c*d) Materials 34000 34000/88300*100 = 38.51% 17000 6547 Personnel 1200 1200/88300*100 = 1.36% 17000 231 Manufacturing 38300 38300/88300*100 = 43.37% 17000 7373 Packaging 14800 14800/88300*100 = 16.76% 17000 2849 Total 88300 17000 Ans.2 Particulars Supervision Utilities Insurance Total Materials 10244 19094 6547 35885 Personnel 4553 3094 231 7878 Manufacturing 36992 32922 7373 77287 Packaging 18211 8890 2849 29950 Total 70000 64000 17000 151000

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.