Won Han Co. has four departments: materials, personnel, manufacturing, and packa
ID: 2561441 • 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.
Prepare a summary table that reports the indirect expenses assigned to each of the four departments. (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
Solution:
Part 1 – Allocation of Indirect expenses
Supervision expenses
Department
% of Total
Cost
Materials
15%
(18/120*100)
11250
Personnel
5%
3750
Manufacturing
55%
41250
Packaging
25%
18750
Totals
100
75000
Utilities expenses
Department
% of Total
Cost
Materials
30%
$18,000
Personnel
5%
$3,000
Manufacturing
50%
$30,000
Packaging
15%
$9,000
Totals
100%
$60,000
Insurance expenses
Department
% of Total
Cost
Materials
10.00%
$1,650
Personnel
2.00%
$330
Manufacturing
63.00%
$10,395
Packaging
25.00%
$4,125
Totals
100%
$16,500
Part 2 --- summary table
Supervision
Utilities
Insurance
Total
Materials
11250
18000
1650
30900
Personnel
3750
3000
330
7080
Manufacturing
41250
30000
10395
81645
Packaging
18750
9000
4125
31875
Totals
75000
60000
16500
151500
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Supervision expenses
Department
% of Total
Cost
Materials
15%
(18/120*100)
11250
Personnel
5%
3750
Manufacturing
55%
41250
Packaging
25%
18750
Totals
100
75000
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