Reference no: EM132814264

Problem - 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	$83,600	Number of employees
Utilities	61,000	Square feet occupied
Insurance	28,000	Value of assets in use
Total	$172,698

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

Department	Employees	Square Feet	Asset Values
Materials	22	21,000	$17,750
Personnel	11	5,250	2,130
Manufacturing	44	68,250	36,210
Packaging	33	10,500	14,910
Total	110	105,000	$71,000

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.