Supervision expensesAllocation BaseDepartmentMaterialsPercent of Allocation BaseNumerator Denominator % of TotalCost to be Allocated Allocated Cost0PersonnelManufacturingPackagingTotalsUtilities000000Allocation BasePercent of Allocation BaseCost to be Allocated Allocated CostDepartmentMaterialsNumerator Denominator % of Total0PersonnelManufacturingPackagingTotals000000InsuranceDepartmentMaterialsPersonnelManufacturingAllocation BasePercent of Allocation BaseCost to be Allocated Allocated CostNumerator Denominator % of Total0000Packaging00Totals0 Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows.DepartmentSquare Feet Asset ValuesEmployeesMaterials2630,000$ 9,300Personnel1312,0002,480ManufacturingPackaging5266,00037,8203912,00012,400Total130120,000$ 62,000The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases.Indirect ExpenseSupervisionUtilitiesInsuranceTotalCost$ 82,700 Number of employeesAllocation Base52,000 Square feet occupied23,500 Asset values$ 158,200Allocate each of the three indirect expenses to the four departments.

Indirect cost is the costs that are not directly related to the products or services that are…

Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Employees Square Feet Asset Values Materials 26 30,000 $ 9,300 Personnel 13 12,000 2,480 Manufacturing Packaging 52 66,000 37,820 39 Total 130 12,000 120,000 12,400 $ 62,000 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 $ 82,700 Number of employees Allocation Base 52,000 Square feet occupied 23,500 Asset values $ 158,200 Allocate each of the three indirect expenses to the four departments.

Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Employees Square Feet Asset Values Materials 26 30,000 $ 9,300 Personnel 13 12,000 2,480 Manufacturing Packaging 52 66,000 37,820 39 Total 130 12,000 120,000 12,400 $ 62,000 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 $ 82,700 Number of employees Allocation Base 52,000 Square feet occupied 23,500 Asset values $ 158,200 Allocate each of the three indirect expenses to 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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