Department Employees Square Feet Asset Values Materials 40 60,000 $ 9,750 Personnel 8 7,500 Manufacturing Packaging 64 67,500 1,300 33,800 48 15,000 20,150 Total 160 150,000 $ 65,000 e four departments share the following indirect expenses for sup Indirect Expense Supervision Utilities Insurance Total Cost Allocation Base $ 83,000 Number of employees 55,000 Square feet occupied 25,000 Asset values $ 163,000
Department Employees Square Feet Asset Values Materials 40 60,000 $ 9,750 Personnel 8 7,500 Manufacturing Packaging 64 67,500 1,300 33,800 48 15,000 20,150 Total 160 150,000 $ 65,000 e four departments share the following indirect expenses for sup Indirect Expense Supervision Utilities Insurance Total Cost Allocation Base $ 83,000 Number of employees 55,000 Square feet occupied 25,000 Asset values $ 163,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Supervision expenses
Allocation Base
Department
Materials
Personnel
Manufacturing
Packaging
Totals
Utilities
Department
Materials
Personnel
Manufacturing
Packaging
Totals
Insurance
Department
Materials
Personnel
Manufacturing
Packaging
Totals
Percent of Allocation Base
Numerator Denominator % of Total
Cost to be Allocated Allocated Cost
Allocation Base
Percent of Allocation Base
Cost to be Allocated Allocated Cost
Numerator Denominator % of Total
Allocation Base
Percent of Allocation Base
Cost to be Allocated Allocated Cost
Numerator Denominator % of Total

Transcribed Image Text:Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows.
Department
Square Feet Asset Values
Employees
Materials
40
60,000
$ 9,750
Personnel
8
7,500
1,300
Manufacturing
Packaging
64
67,500
33,800
48
15,000
20,150
Total
160
150,000
$ 65,000
The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases.
Indirect Expense
Supervision
Utilities
Insurance
Total
Cost
$ 83,000 Number of employees
Allocation Base
55,000 Square feet occupied
25,000 Asset values
$ 163,000
Allocate each of the three indirect expenses to the four departments.
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