Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Materials Personnel Manufacturing Packaging ITI Employees Square Feet Asset Values 64,750 9,250 92,500 18,500 185,000 $ 7,900 4,740 45,820 20,540 $ 79,000 38 19 76 57 Total 190 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Cost $ 84,400 Number of employees 69,000 Square feet occupied 32,000 Asset values $ 185,400 Allocation Base 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. Department Materials Personnel Manufacturing Packaging ITI Employees Square Feet Asset Values 64,750 9,250 92,500 18,500 185,000 $ 7,900 4,740 45,820 20,540 $ 79,000 38 19 76 57 Total 190 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Cost $ 84,400 Number of employees 69,000 Square feet occupied 32,000 Asset values $ 185,400 Allocation Base Insurance Total Allocate each of the three indirect expenses to the four departments.

Name: Renata Company has four departments: Materials, Personnel, Manufactur
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Description: Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows.DepartmentMaterialsPersonnelManufacturingPackagingEmployees Square Feet Asset Values$ 7,9004,74045,82020,540$ 79,0003819765764,7509,25092,50

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 5SEB

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Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Square Feet Asset Values Employees Materials 26 30,000 $ 9,300 Personnel 13 12,000 2,480 Manufacturing Packaging 52 66,000 37,820 39 12,000 12,400 Total 130 120,000 $ 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.
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