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

Problem 1Q

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