upspnewLbRhect Mheducation.com/flow/connect.html 8 Woh Che Co. has four departme

Question

upspnewLbRhect Mheducation.com/flow/connect.html 8 Woh Che Co. has four departments materials, personnel, manufacturing, and packaging In a incurred three shared indirect expenses. The amounts of these indirect expenses and the bases used to allocate them follow 15 points s 82,880 s9,e00 Square feet occupied 27,880 Value of assets in use Insurance $168,888 Departmental data for the company's recent reporting peniod follow 9,500 95,000 19,000 4,140 38,640 Manufacturing 15,87 190,800 1. Use this information to allocate each of the three indirect expenses across the four departments 2. Prepare a summary table that reports the indirect expenses assigned to each of the four departments Use this in ?Prey 8of12 111 Next >

Explanation / Answer

Ans.1 Supervision Expenses Allocation base Percentage of Allocation Base Cost to be Allocated Allocated Cost Department Employees Numerator Denominator % of Total Materials 58 58 200 29% 82000 23780 Personnel 8 8 200 4% 82000 3280 Manufacturing 70 70 200 35% 82000 28700 Packaging 64 64 200 32% 82000 26240 200 100% 82000 Utilities Expenses Allocation base Percentage of Allocation Base Cost to be Allocated Allocated Cost Department Square feet Numerator Denominator % of Total Materials 66500 66500 190000 35% 59000 20650 Personnel 9500 9500 190000 5% 59000 2950 Manufacturing 95000 95000 190000 50% 59000 29500 Packaging 19000 19000 190000 10% 59000 5900 190000 100% 59000 Insurance Expenses Allocation base Percentage of Allocation Base Cost to be Allocated Allocated Cost Department Assets values Numerator Denominator % of Total Materials 10350 10350 69000 15% 27000 4050 Personnel 4140 4140 69000 6% 27000 1620 Manufacturing 38640 38640 69000 56% 27000 15120 Packaging 15870 15870 69000 23% 27000 6210 69000 100% 27000 Ans.2 Supervision Utilities Insurance Total Department expenses expenses expenses Materials 23780 20650 4050 48480 Personnel 3280 2950 1620 7850 Manufacturing 28700 29500 15120 73320 Packaging 26240 5900 6210 38350 82000 59000 27000 168000

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