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

1) Allocation of Supervision Expenses (Amounts in $)

Allocation of Utilities Expenses (Amounts in $)

Allocation of Insurance Expenses (Amounts in $)

2) Summary Table showing indirect costs for each department (Amts in $)

Departments No. of Employees Percent of Allocation Base (A) (%) Indirect Cost (B) Allocated Cost (A*B) Materials 18 (18/123) = 14.63 70,000 10,241 Personnel 8 (8/123) = 6.50 70,000 4,550 Manufacturing 65 (65/123) = 52.85 70,000 36,995 Packaging 32 (32/123) = 26.02 70,000 18,214 Totals 123 100 70,000

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