Won Han Co. has four departments: materials, personnel, manufacturing, and packa
ID: 2513601 • 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
Supervision expenses
Allocation Base
Numerator
Denomintator
% of total
Costs to be allocated
Allocated Cost
Departments:
Materials
Number of employees
17
118
14%
$ 71,000.00
$ 10,228.81
Personnel
Number of employees
5
118
4%
$ 71,000.00
$ 3,008.47
Manufacturing
Number of employees
65
118
55%
$ 71,000.00
$ 39,110.17
Packaging
Number of employees
31
118
26%
$ 71,000.00
$ 18,652.54
Totals
118
118
100%
$ 71,000.00
$ 71,000.00
Percent of Allocation Base
Utilities
Allocation Base
Numerator
Denomintator
% of total
Costs to be allocated
Allocated Cost
Departments:
Materials
SquareFeet
26000
90900
29%
$ 58,000.00
$ 16,589.66
Personnel
SquareFeet
4000
90900
4%
$ 58,000.00
$ 2,552.26
Manufacturing
SquareFeet
47000
90900
52%
$ 58,000.00
$ 29,989.00
Packaging
SquareFeet
13900
90900
15%
$ 58,000.00
$ 8,869.09
Totals
90900
90900
100%
$ 58,000.00
$ 58,000.00
Percent of Allocation Base
Insurance
Allocation Base
Numerator
Denomintator
% of total
Costs to be allocated
Allocated Cost
Departments:
Materials
Asset Values
54000
108500
50%
$ 16,900.00
$ 8,411.06
Personnel
Asset Values
1400
108500
1%
$ 16,900.00
$ 218.06
Manufacturing
Asset Values
37900
108500
35%
$ 16,900.00
$ 5,903.32
Packaging
Asset Values
15200
108500
14%
$ 16,900.00
$ 2,367.56
Totals
108500
108500
100%
$ 16,900.00
$ 16,900.00
SUMMARY
Supervision
Utilities
Insurance
Total
Materials
$ 10,228.81
$ 16,589.66
$ 8,411.06
$ 35,229.53
Personnel
$ 3,008.47
$ 2,552.26
$ 218.06
$ 5,778.79
Manufacturing
$ 39,110.17
$ 29,989.00
$ 5,903.32
$ 75,002.49
Packaging
$ 18,652.54
$ 8,869.09
$ 2,367.56
$ 29,889.19
Totals
$ 71,000.00
$ 58,000.00
$ 16,900.00
$ 1,45,900.00
Supervision expenses
Allocation Base
Numerator
Denomintator
% of total
Costs to be allocated
Allocated Cost
Departments:
Materials
Number of employees
17
118
14%
$ 71,000.00
$ 10,228.81
Personnel
Number of employees
5
118
4%
$ 71,000.00
$ 3,008.47
Manufacturing
Number of employees
65
118
55%
$ 71,000.00
$ 39,110.17
Packaging
Number of employees
31
118
26%
$ 71,000.00
$ 18,652.54
Totals
118
118
100%
$ 71,000.00
$ 71,000.00
Percent of Allocation Base
Utilities
Allocation Base
Numerator
Denomintator
% of total
Costs to be allocated
Allocated Cost
Departments:
Materials
SquareFeet
26000
90900
29%
$ 58,000.00
$ 16,589.66
Personnel
SquareFeet
4000
90900
4%
$ 58,000.00
$ 2,552.26
Manufacturing
SquareFeet
47000
90900
52%
$ 58,000.00
$ 29,989.00
Packaging
SquareFeet
13900
90900
15%
$ 58,000.00
$ 8,869.09
Totals
90900
90900
100%
$ 58,000.00
$ 58,000.00
Percent of Allocation Base
Insurance
Allocation Base
Numerator
Denomintator
% of total
Costs to be allocated
Allocated Cost
Departments:
Materials
Asset Values
54000
108500
50%
$ 16,900.00
$ 8,411.06
Personnel
Asset Values
1400
108500
1%
$ 16,900.00
$ 218.06
Manufacturing
Asset Values
37900
108500
35%
$ 16,900.00
$ 5,903.32
Packaging
Asset Values
15200
108500
14%
$ 16,900.00
$ 2,367.56
Totals
108500
108500
100%
$ 16,900.00
$ 16,900.00
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