eekl MasteringBiology MasteringBiology eTe DRAKE STATE Community 0111.201810,BUS

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eekl MasteringBiology MasteringBiology eTe DRAKE STATE Community 0111.201810,BUS-248-0 FA2017 Chapter 22-Homewc ezto.mheducation.com/hm.tpx?-:0.52984 13960480809-1512227 (3iOKD | | a search Exercise 22-5 Departmental expense allocations LO P2 month, the four departments incurred three shared indirect ex expenses and the bases used to allocate thern follow has four departments: matenals, personnel, manutacturing, and packaging n a recent penses. The amounts of these indirect 84.300 Number of employees 68,000 Square feet occupied 31,500 Value of assets in use r Supervision Utilities Insurance 183,800 Total Departmental data for the company's recent reporting period follow Department Employees Square Feet Asset Values Maternals Personnel 36 52,500 $ 11,700 3,900 47,580 26.250 14.820 17,500 78.750 72 63 Total 180 175.000 S78,000 .Use this infonmation to allocate each of the three indirect expenses across the four departments 0 Type here to search ^ 4:0 Rep 12/2/2017 :07 AM

Explanation / Answer

Ans.1

Supervisions expenses Allocation base Percent of Allocation base Indirect cost Allocation cost Department Number of employees Numerator Denominator % of total Materials 36 36 180 20% 84300 16860 Personnel 9 9 180 5% 84300 4215 Manufacturing 72 72 180 40% 84300 33720 Packaging 63 63 180 35% 84300 29505 Totals 180 100% 84300 Utilities: Allocation base Percent of Allocation base Indirect cost Allocation cost Department Squre feet occupied Numerator Denominator % of total Materials 52500 52500 175000 30% 68000 20400 Personnel 17500 17500 175000 10% 68000 6800 Manufacturing 78750 78750 175000 45% 68000 30600 Packaging 26250 26250 175000 15% 68000 10200 Totals 175000 100% 68000 Insurance Allocation base Percent of Allocation base Indirect cost Allocation cost Department Value of asset in use Numerator Denominator % of total Materials 11700 11700 78000 15% 31500 4725 Personnel 3900 3900 78000 5% 31500 1575 Manufacturing 47580 47580 78000 61% 31500 19215 Packaging 14820 14820 78000 19% 31500 5985 Totals 78000 100% 31500 Ans. 2 Department Supervision Utilities Insurance Total Materials 16860 20400 4725 41985 Personnel 4215 6800 1575 12590 Manufacturing 33720 30600 19215 83535 Packaging 29505 10200 5985 45690 Totals 84300 68000 31500 183800 *% of total = Numerator / Denominator * 100 *Allocation cost = Indirect cost * % of total

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