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Category > Accounting Posted 10 Sep 2017 My Price 9.00

Won Han Co

Won Han 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              

$ 75,000

Number of employees

Utilities                 

60,000

Square feet occupied

Insurance                

16,500

Value of assets in use

Total                    

$151,500

 

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

Department

Employees

Square Feet

Asset Values

Materials            

18

27,000

$ 6,000

Personnel            

6

4,500

1,200

Manufacturing        

66

45,000

37,800

Packaging            

30

13,500

15,000

Total               

120

90,000

$60,000

(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.

Answers

Maurice Tutor
(5)
Status NEW Posted 10 Sep 2017 01:09 PM My Price 9.00

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