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 ExpenseAllocation Base$ 82,000 Number of employees59,000 Square feet occupied27,000 Value of assets in useCostSupervisionUtilitiesInsuranceTotal$168,000Departmental data for the company's recent reporting period follow.DepartmentMaterialsEmployeesSquare Feet66,5009,50095,00019,000Asset Values58$10,3504,14038,64015,870Personnel8ManufacturingPackaging7064Total200190,000$69,0001. Use this information to allocate each of the three indirect expenses across the four departments.2. Prepare a summary table that reports the indirect expenses assigned to each of the four departments.Complete this question by entering your answers in the tabs below.Required 1Required 2Prepare a summary table that reports the indirect expenses assigned to each of the four departmehts.Supervision Utilities InsuranceTotalMaterials$PersonnelManufacturingPackagingTotals2$0 $0 $< Required 1Required 2 >%24

Indirect cost is the cost which is not related to the product directly. It is the cost incurred for…

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 Personnel Manufacturing Packaging Employees Square Feet 66,500 9,500 95,000 19,000 Asset Values $10,350 4,140 38,640 15,870 58 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 indirect expenses assigned to each of the four departments. Supervision Utilities Insurance Total Materials $ Personnel Manufacturing Packaging Totals $ 0 $ 24 < Required 1 Required 2>

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 Personnel Manufacturing Packaging Employees Square Feet 66,500 9,500 95,000 19,000 Asset Values $10,350 4,140 38,640 15,870 58 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 indirect expenses assigned to each of the four departments. Supervision Utilities Insurance Total Materials $ Personnel Manufacturing Packaging Totals $ 0 $ 24 < Required 1 Required 2>

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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Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Basis Salaries $40,000 Number of employees Depreciation Advertising 26,000 Cost of goods sold 60,000 Net sales Item Drilling Grinding Total Number of employees 1,800 2,700 4,500 Net sales $352,000 $528,000 $880,000 Cost of goods sold $110,200 $179,800 $290,000 The amount of depreciation that should be allocated to Grinding for the current period is: Multiple Choice $37,200. $26,000.