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# Woh Che 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 CostAllocation BaseSupervision\$82,500Number of employeesUtilities 50,000Square feet occupiedInsurance 22,500Value of assets in useTotal\$155,000  Departmental data for the company’s recent reporting period follow. DepartmentEmployees Square Feet Asset ValuesMaterials 27   25,000   \$6,000 Personnel 9   5,000    1,200 Manufacturing 63   55,000    37,800 Packaging 51   15,000    15,000 Total 150   100,000   \$60,000   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.

Question

Woh Che 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 Cost Allocation Base Supervision \$ 82,500 Number of employees Utilities 50,000 Square feet occupied Insurance 22,500 Value of assets in use Total \$ 155,000

Departmental data for the company’s recent reporting period follow.

 Department Employees Square Feet Asset Values Materials 27 25,000 \$ 6,000 Personnel 9 5,000 1,200 Manufacturing 63 55,000 37,800 Packaging 51 15,000 15,000 Total 150 100,000 \$ 60,000

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.

check_circleAnswer
Step 1

Based on the given information allocate the indirect expenses to each of the department.

Allocation of supervision expenses:

Step 2

Allocation of Utilities expense:

Step 3

Allocation of Insurance expense:

...

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