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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.

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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Supervision Utilities Cost Allocation Base $ 82,600 Number of employees 51,000 Square feet occupied 23,000 Value of assets in use Insurance Total $156,600 Departmental data for the company's recent reporting period follow. ETII Employees Square Feet 22,000 11,000 55,000 22,000 Department Materials Asset Values $ 6,100 1,830 36,600 16,470 24 Personnel Manufacturing Packaging 48 42 Total 120 110,000 $61,000 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. Complete this question by entering your answers in the tabs below.
Transcribed Image Text: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 Supervision Utilities Cost Allocation Base $ 82,600 Number of employees 51,000 Square feet occupied 23,000 Value of assets in use Insurance Total $156,600 Departmental data for the company's recent reporting period follow. ETII Employees Square Feet 22,000 11,000 55,000 22,000 Department Materials Asset Values $ 6,100 1,830 36,600 16,470 24 Personnel Manufacturing Packaging 48 42 Total 120 110,000 $61,000 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. Complete this question by entering your answers in the tabs below.
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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Supervision Utilities Insurance Total Materials 24 Personnel Manufacturing Packaging Totals < Required 1 Required 2 > %24
Transcribed Image Text: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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Supervision Utilities Insurance Total Materials 24 Personnel Manufacturing Packaging Totals < Required 1 Required 2 > %24
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