Karen Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the four departments incurredthree shared indirect expenses. The amounts of these indirect expenses and the bases used to allocate them follow.Indirect ExpenseCostAllocation BaseSupervisionUtilities$ 82,000 Number of employees59,000 Square feet occupied27,000 Value of assets in useInsuranceTotal$168,000Departmental data for the company's recent reporting period follow.DepartmentMaterialsEmployeesSquare Feet66,5009,50095,00019,000Asset Values58$10,3504,14038,64015,870Personnel8ManufacturingPackaging7064Total200190,000$69,0001. 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 1Required 2Use this information to allocate each of the three indirect expenses across the four departments.Supervision expensesAllocation BasePercent of Allocation BaseCost to be Allocated Allocated CostDepartmentNumerator Denominator % of TotalMaterialsPersonnelManufacturingPackagingTotalsUtilitiesAllocation BasePercent of Allocation BaseCost to be AllocatedAllocated Cost Required 1Required 2Use this information to allocate each of the three indirect expenses across the four departments.Supervision expensesAllocation BasePercent of Allocation BaseCost to be Allocated Allocated CostDepartmentNumerator Denominator % of TotalMaterialsPersonnelManufacturingPackagingTotalsUtilitiesAllocation BasePercent of Allocation BaseCost to be AllocatedAllocated CostDepartmentNumerator Denominator % of TotalMaterialsPersonnelManufacturingPackagingTotalsInsuranceAllocation BasePercent of Allocation BaseCost to be Allocated Allocated CostDepartmentNumerator Denominator % of TotalMaterialsPersonnelManufacturingPackagingTotals< Required 1Required 2 >

Indirect expenses are the expenses that are incurred to run a business. The indirect expenses may be…

Karen 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 $ 82,000 Number of employees 59,000 Square feet occupied 27,000 Value of assets in use Allocation Base Insurance Total $168,000 Departmental data for the company's recent reporting period follow. Department Materials Employees Square Feet Asset Values 58 66,500 $10,350 4,140 38,640 15,870 Personnel 8 Manufacturing Packaging 9,500 95,000 19,000 70 64 Total 200 190,000 $69,000 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.

Karen 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 $ 82,000 Number of employees 59,000 Square feet occupied 27,000 Value of assets in use Allocation Base Insurance Total $168,000 Departmental data for the company's recent reporting period follow. Department Materials Employees Square Feet Asset Values 58 66,500 $10,350 4,140 38,640 15,870 Personnel 8 Manufacturing Packaging 9,500 95,000 19,000 70 64 Total 200 190,000 $69,000 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Karen 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 Allocation Base $ 82,000 Number of employees 59,000 Square feet occupied 27,000 Value of assets in use Cost Supervision Utilities Insurance Total $168,000 Departmental data for the company's recent reporting period follow. Department Materials Employees Square Feet 66,500 9,500 95,000 19,000 Asset Values 58 $10,350 4,140 38,640 15,870 Personnel 8 Manufacturing Packaging 70 64 Total 200 190,000 $69,000 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. Required 1 Required 2 Prepare a summary table that reports…
The following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc. Evaluate and correct this report. Marching Ants Inc.Manufacturing CostsFor the Quarter Ended June 30 Materials used in production (including $56,200 of indirect materials) $607,500 Direct labor (including $84,400 maintenance salaries) 562,500 Factory overhead: Supervisor salaries 517,500 Heat, light, and power 140,650 Sales salaries 348,750 Promotional expenses 315,000 Insurance and property taxes—plant 151,900 Insurance and property taxes—corporate offices 219,400 Depreciation—plant and equipment 123,750 Depreciation—corporate offices 90,000 Total $3,076,950 Marching Ants Inc.Manufacturing CostsFor the Quarter Ended June 30 $- Select - - Select - Factory overhead: $- Select - - Select - - Select - - Select - - Select - - Select - - Select - Total…
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Base Salaries $ 30,000 Number of employees Depreciation 20,000 Cost of goods sold Advertising 40,000 Percentage of total sales Department Number of employees Sales Cost of goods sold Drilling 1,000 $ 325,000 $ 75,000 Grinding 1,500 475,000 125,000 Total 2,500 $ 800,000 $ 200,000 The amount of salaries that should be allocated to Grinding for the current period is:
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Cheyenne's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $271000, $158300, and $68800, respectively. Information on the hours used are as follows: Acct Admin HR Surgery ER Hours in Acct 20 48 360 220 Hours in Admin 16 8 120 80 Hours in HR 8 4 65 130 What are the total costs allocated to the surgery department from the supporting departments? (Do not round the intermediate calculations.) O $280035. O $282405. O $256681. O $0.
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 Insurance Total Cost $ 83,100 Number of employees 56,000 square feet occupied 25,500 Value of assets in use $164,600 Allocation Base Departmental data for the company's recent reporting period follow. Department Materials Square Feet Asset Values 32,000 $13,200 16,000 1,980 88,000 34,980 Personnel Manufacturing Packaging Total 24,000 15,840 160,000 $66,000 Employees 34 17 68 51 170 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. OL Prev 1 of 3 - --- ‒‒‒ H Next > O
The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $489,600 are allocated on the basis of machine hours. The Accounting Department's costs of $122,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $210,000 and $410,000, respectively. Maintenance Accounting A B Machine hours 895 80 2,400 320 Number of employees 2 2 8 4 What is the Maintenance Department's cost allocated to Department A using the direct method? Note: Do not round intermediate calculations.
Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 210 employees and occupies 56,400 square feet; Painting has 140 employees and occupies 37,600 square feet. The company has indirect expenses that consist of administrative expenses of $87,000 and maintenance expenses of $105,000. Administrative expenses are allocated based on the number of workers in each department and maintenance is allocated based on square footage. The amount of maintenance expenses that should be allocated to the Assembly Department for the current period is: Multiple Choice O $52,200. O $63,000. O $115,200. O $115,950. O $126,000.
In divisional income statements prepared for LeFevre Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $63,568, and the Purchasing Department had expenses of $25,370 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Government Residential Commercial Contract Sales $530,000 $703,000 $1,614,000 Number of employees: Weekly payroll (52 weeks per year) 145 65 70 Monthly payroll 34 45 32 Number of purchase requisitions per year 1,800 1,300 1,200 a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. Government Residential Commercial Total Contract Number of payroll checks: Weekly payroll Monthly payroll Total…