Exercise 22-5 Departmental expense II||octions L0 P2 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 $ 84,100 Number of employees Utilities 66,000 Square feet occupied
Insurance 30,500 Value of assets in use
Total $ 180,600 Departmental data for the company's recent reporting period follow. Department Employees Square Feet AseetValuee Materials 40 31,000 $ 7,600
Personnel 8 15,500 2,280
Manufacturing 64 77,500 50,160
Packaging 48 31,000 15,960
Total 160 155,000 $76,000 1. Use this information to allocate each of the three indirect expenses across the four departments. Answer Is not complete ———————
—————I——
—————I——
—————I—_
—————I—_
—————I—— Depanmem ——— W... ——
31.0w———l—— ————_l——
—————I—-I
——————_
—m__-I—— ———————
—————I——
—————I——
—————l—-I
—————I—-I Totals $ 76,000 0