Renats Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows.Employees Square Feet Asset values$ 18,3584,148DepartmentMaterialsPersonalManufacturingPackagingTotalSupervision expencesDepartmentMaterialsPersonnelManufacturingPackagingTotalsUtilitiecThe four departments share the following Indirect expenses for supervision, utilities, and insurance according to their allocation bases.Indirect ExpenseCostAllocation BaseSupervisionutilities$82,880 Number of employees59,888 Square feet occupied27,880 Asset values$ 168,000InsuranceTotalDepartmentMaterialsPersonnelManufacturingPackagingAllocate each of the three Indirect expenses to the four departments.Totals58IncuranceDepartmentMaterialsPersonnelManufacturingPackaging87064Totals66,5009,50095,00019,808198,800Allocation Base38,64815,878$ 69,000Allocation BateAllocation BasePercent of Allocation BacaNumerator Denominator of TotalPercent of Allocation BacaNumerator Denominato % of TotalPercent of Allocation BacaNumerator Denominato % of TotalCost to be Allocated Allocated CoctCost to be Allocated Allocated CoctCost to be Allocated Allocated Coct

Cost allocation is the method using which the costs incurred as a whole on different activities can…

Renats Company has four departments: Materials, Personnel, Manufacturing, and Packaging Information follows. Exployees Square Foot Asset values 58 Department Person Supervision expenses Department Materials Personnal Total The four departments share the following Indirect expenses for supervision, utilities, and insurance according to their allocation bases Manufacturing Packaging Ubites Department Supervision utilities Total Allocate each of the three indirect expenses to the four departments Personal Manding Packaging 54 Insurance Department Materials Personal Manufacturing Packaging Totais 9,500 95,000 19,000 100,000 $82,000 Number of employees 50,000 square foot occupied $18,000 $10,0 4,140 38,640 15,870 Allocation Base Allocation Base Allocation Base Percent of Allocation Base Numerator Denominator% of Total Percent of Allocation Base Numerator Denominato % of Total Percent of Allocation Base Numerator Denominator of Total Cost to be Allocated Allocated Cost Cost to be Allocated Allocated Cost Cost to be Allocated Allocated Cost

Renats Company has four departments: Materials, Personnel, Manufacturing, and Packaging Information follows. Exployees Square Foot Asset values 58 Department Person Supervision expenses Department Materials Personnal Total The four departments share the following Indirect expenses for supervision, utilities, and insurance according to their allocation bases Manufacturing Packaging Ubites Department Supervision utilities Total Allocate each of the three indirect expenses to the four departments Personal Manding Packaging 54 Insurance Department Materials Personal Manufacturing Packaging Totais 9,500 95,000 19,000 100,000 $82,000 Number of employees 50,000 square foot occupied $18,000 $10,0 4,140 38,640 15,870 Allocation Base Allocation Base Allocation Base Percent of Allocation Base Numerator Denominator% of Total Percent of Allocation Base Numerator Denominato % of Total Percent of Allocation Base Numerator Denominator of Total Cost to be Allocated Allocated Cost Cost to be Allocated Allocated Cost Cost to be Allocated Allocated Cost

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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