Karen Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the four departments incurredthree shared indirect expenses. The amounts of these indirect expenses and the bases used to allocate them follow.Indirect ExpenseAllocation Base$ 82,000 Number of employees59,000 Square feet occupied27,000 Value of assets in useCostSupervisionUtilitiesInsuranceTotal$168,000Departmental data for the company's recent reporting period follow.DepartmentMaterialsEmployeesSquare Feet66,5009,50095,00019,000Asset Values58$10,3504,14038,64015,870Personnel8ManufacturingPackaging7064Total200190,000$69,0001. Use this information to allocate each of the three indirect expenses across the four departments.2. Prepare a summary table that reports the indirect expenses assigned to each of the four departments.Complete this question by entering your answers in the tabs below.Required 1Required 2Prepare a summary table that reports the indirect expenses assigned to each of the four departmehts.Supervision Utilities InsuranceTotalMaterials$PersonnelManufacturingPackagingTotals2$0 $0 $< Required 1Required 2 >%24

Indirect cost is the cost which is not related to the product directly. It is the cost incurred for…

Karen 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. Indirect Expense Allocation Base $ 82,000 Number of employees 59,000 Square feet occupied 27,000 Value of assets in use Cost Supervision Utilities Insurance Total $168,000 Departmental data for the company's recent reporting period follow. Department Materials Personnel Manufacturing Packaging Employees Square Feet 66,500 9,500 95,000 19,000 Asset Values $10,350 4,140 38,640 15,870 58 70 64 Total 200 190,000 $69,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Supervision Utilities Insurance Total Materials $ Personnel Manufacturing Packaging Totals $ 0 $ 24 < Required 1 Required 2>

Karen 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. Indirect Expense Allocation Base $ 82,000 Number of employees 59,000 Square feet occupied 27,000 Value of assets in use Cost Supervision Utilities Insurance Total $168,000 Departmental data for the company's recent reporting period follow. Department Materials Personnel Manufacturing Packaging Employees Square Feet 66,500 9,500 95,000 19,000 Asset Values $10,350 4,140 38,640 15,870 58 70 64 Total 200 190,000 $69,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Supervision Utilities Insurance Total Materials $ Personnel Manufacturing Packaging Totals $ 0 $ 24 < Required 1 Required 2>

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 7E: Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments,...

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