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.)

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

Ans.1 1 Supervision Expenses: Number of percentage of Indirect Allocated Department (a) employees (b) employees in total © cost (d) Cost (c*d) Materials 17 17/114 * 100   = 14.91% 74000 11033 Personnel 4 4/114*100       =   3.51% 74000 2597 Manufacturing 64 64/114*100     = 56.14% 74000 41544 Packaging 29 29/114*100     = 25.44% 74000 18826 Total 114 100% 74000 2 Utilities: Sqare feet percentage of Indirect Allocated Department (a) occupied (b) sq. feet in total © cost (d) Cost (c*d) Materials 28000 28000/87200 * 100 = 32.1% 59000 18939 Personnel 4600 4600/87200 * 100    = 5.3% 59000 3127 Manufacturing 41000 41000/87200 * 100 = 47% 59000 27730 Packaging 13600 13600/87200 * 100 = 15.6% 59000 9204 Total 87200 100% 59000 3 Insurance: Value of assets percentage of Indirect Allocated Department (a) in use (b) assets values in total © cost (d) Cost (c*d) Materials 82000 82000/136900*100 = 59.9% 16900 10123 Personnel 1100 1100/136900*100    = 0.8% 16900 135 Manufacturing 38300 38300/136900*100 = 28% 16900 4732 Packaging 15500 15500/136900*100 = 11.3% 16900 1910 Total 136900 16900 Ans.2 Particulars Supervision Utilities Insurance Total Materials 11033 18939 10123 40096 Personnel 2597 3127 135 5860 Manufacturing 41544 27730 4732 74006 Packaging 18826 9204 1910 29939 Total 74000 59000 16900 149900

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

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