connect ch-24
shahimermaid (Not rated)
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Won 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 | $ | 70,000 | Number of employees |
| Utilities | 56,000 | Square feet occupied | |
| Insurance | 16,100 | Value of assets in use | |
| Total | $ | 142,100 | |
| Departmental data for the company’s recent reporting period follow. |
| Department | Employees | Square Feet | Asset Values | ||||||
| Materials | 18 | 25,000 | $ | 33,000 | |||||
| Personnel | 7 | 4,100 | 1,300 | ||||||
| Manufacturing | 65 | 45,000 | 38,200 | ||||||
| Packaging | 28 | 13,100 | 14,800 | ||||||
| Total | 118 | 87,200 | $ | 87,300 | |||||
| (1) | Use this information to allocate each of the three indirect expenses across the four departments. |
10 years ago
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