Prepare a summary table that reports the indirect expenses

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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

$84,000

Number of employees

Utilities

65,000

Square feet occupied

Insurance

30,000

Value of assets in use

Total

$179,000

 

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

Department

Employees

Square Feet

Asset Value

Materials

27

58,000

$7,500

Personnel

9

7,250

1,500

Manufacturing

60

65,250

48,750

Packing

54

14,500

17,250

Total

150

145,000

$75,000

Required -

1. Use this information to allocate each of three indirect expenses across the four departments.

2. Prepare a summary table that reports the indirect expenses assigned to each of the four departments.

Reference no: EM131600181

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