Reference no: EM131600181

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.