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Woh Che Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month,...

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Accounting

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 $ 83,100 Number of employees
Utilities 56,000 Square feet occupied
Insurance 25,500 Value of assets in use
Total $ 164,600

Departmental data for the companys recent reporting period follow.

Department Employees Square Feet Asset Values
Materials 34 32,000 $ 13,200
Personnel 17 16,000 1,980
Manufacturing 68 88,000 34,980
Packaging 51 24,000 15,840
Total 170 160,000 $ 66,000

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.

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