1 answer

Saved Saved Exercise 09-5 Departmental expense allocations LO P2 Woh Che Co has four departments: Materials,...

Question:

Saved Saved Exercise 09-5 Departmental expense allocations LO P2 Woh Che Co has four departments: Materials, Personnel, Manuf
W the tabs below. Required 1 Required 2 Use this information to allocate each of the three indirect expenses across the four
U ule companys recent reporting period follow. Department Materials Personnel Manufacturing Packaging Employees 40 Asset Val
Saved Saved Exercise 09-5 Departmental expense allocations LO P2 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 Supervision utilities Insurance Total Cost Allocation Base $ 84,100 Number of employees 66,000 square feet occupied 30,500 Value of assets in use $100,600 Departmental data for the company's recent reporting period follow Employees 40 Department Materials Personnel Manufacturing Packaging Total Square feet 31,000 15,50 77,500 31,00 155,000 Asset Values $ 7.600 2.2 50, 160 15.960 $75.000 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 Use this information to allocate each of the three indirect expenses across the four departments Alloo Supervision expenson Department Allocation flane Percent of Allocation Base Cost to to Allocated Number of employees Numerator Denominator of Total 40150 25001S 0 4.100 160 500% 34 100 Personel Package Totus 10 5 100 Percent of Allocatha nove Cont to be allocated Allocard Cout of Total 31.000 155 000 20 003 Department Matias
W the tabs below. Required 1 Required 2 Use this information to allocate each of the three indirect expenses across the four departments. Allocation Base Number of employees Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 160 25.00% 5.00% 5 160 84,100 Supervision expenses Department Materials Personnel Manufacturing Packaging Totals Utilities Department Materials Personnel Manufacturing Packaging 84.100 Allocation Base Square feet occupied 84,100 Cost to be Allocated Allocated Cost P ercent of Allocation Base Numerator Denominator % of Total 31,000 155,000 20.00% 5 15.500 155,000 10.00% 0 6 6.000 66,000 Totals Allocation Base Value of assets in use 66,000 Cost to be Allocated Allocated Cost Insurance Department Materials Personnel Manufacturing Packaging Percent of Allocation Base Numerator Denominator % of Total S 7.600 5 76.000 100055 2.280 76,000 3.00% 3 0,500 30.500 0 Proy 1 of 1 Next Search
U ule company's recent reporting period follow. Department Materials Personnel Manufacturing Packaging Employees 40 Asset Values $ 7,600 64 Square Feet 31,000 15,500 77,500 31,000 155,000 Total 2,280 S8 160 50, 160 |_ 15,960 $76,000 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 Materials Utilities Insurance Total Personnel Manufacturing Packaging Totals < Required 1 ste to search

Answers

Answers

  • [1]

Supervision expenses

Allcocation base

Numerator

Denominator

% of total

Cost to be allocated

Allocated Cost

Department:

No. of employees

Material

No. of employees

40

160

25%

$84,100

$21,025

Personnel

No. of employees

8

160

5%

$84,100

$4,205

Manufacturing

No. of employees

64

160

40%

$84,100

$33,640

Packaging

No.

Of employees

48

160

30%

$84,100

$25,230

Totals

160

100%

$84,100

Utilities

Allcocation base

Numerator

Denominator

% of total

Cost to be allocated

Allocated Cost

Department:

Square feet

Material

Square feet

31000

155000

20%

$66,000

$13,200

Personnel

Square feet

15500

155000

10%

$66,000

$6,600

Manufacturing

Square feet

77500

155000

50%

$66,000

$33,000

Packaging

Square feet

31000

155000

20%

$66,000

$13,200

Totals

155000

100%

$66,000

Insurance

Allcocation base

Numerator

Denominator

% of total

Cost to be allocated

Allocated Cost

Department:

Value of Asset in use

Material

Value of Asset in use

$7,600

76000

10%

$30,500

$3,050

Personnel

Value of Asset in use

$2,280

76000

3%

$30,500

$915

Manufacturing

Value of Asset in use

$50,160

76000

66%

$30,500

$20,130

Packaging

Value of Asset in use

$15,960

76000

21%

$30,500

$6,405

Totals

$76,000

100%

$30,500

  • [2]

Supervision expenses

Utilities

Insurance

TOTAL

Material

$21,025

$13,200

$3,050

$37,275

Personnel

$4,205

$6,600

$915

$11,720

Manufacturing

$33,640

$33,000

$20,130

$86,770

Packaging

$25,230

$13,200

$6,405

$44,835

Totals

$84,100

$66,000

$30,500

$180,600

.

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