Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows.DepartmentEmployeesSquare Feet66,500Asset ValuesMaterials58$ 10,350Personnel8ManufacturingPackaging9,50095,00019,0004,14038,640706415,870Total200190, 000$ 69,000The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases.Indirect ExpenseCostAllocation BaseSupervision$ 82,000 Number of employees59,000 Square feet occupied27,000 Asset valuesUtilitiesInsuranceTotal$ 168,000Allocate each of the three indirect expenses to the four departments. Allocate each of the three indirect expenses to the four departments.Supervision expensesAllocation BasePercent of Allocation BaseCost to be Allocated Allocated CostDepartmentNumerator Denominator % of TotalMaterialsPersonnelManufacturingPackagingTotalsUtilitiesAllocation BasePercent of Allocation BaseCost to be Allocated Allocated CostDepartmentNumerator Denominator % of TotalMaterialsPersonnelManufacturingPackagingTotalsInsuranceAllocation BasePercent of Allocation BaseCost to be Allocated Allocated CostDepartmentNumerator Denominator % of TotalMaterialsPersonnelManufacturingPackagingTotals

Activity-based costing is used to distribute the overhead. in this overheads are allocated on the…

Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. JII Employees 58 Asset Values Department Materials Personnel Manufacturing Packaging Square Feet 66,500 9,500 95,000 19,000 $ 10,350 4,140 38,640 15,870 $ 69,000 8 70 64 Total 200 190, 000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Cost Allocation Base Supervision Utilities $ 82,000 Number of employees 59,000 Square feet occupied 27,000 Asset values $ 168,000 Insurance Total Allocate each of the three indirect expenses to the four departments.

Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. JII Employees 58 Asset Values Department Materials Personnel Manufacturing Packaging Square Feet 66,500 9,500 95,000 19,000 $ 10,350 4,140 38,640 15,870 $ 69,000 8 70 64 Total 200 190, 000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Cost Allocation Base Supervision Utilities $ 82,000 Number of employees 59,000 Square feet occupied 27,000 Asset values $ 168,000 Insurance Total 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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