Exercise 22-5 (Algo) Departmental expense allocations LO P2 Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Employees Square Feet 34 17 Department Materials Personnel Manufacturing Packaging Total 68 51 170 Indirect Expense Supervision Utilities Insurance Total 32,000 16,000 88,000 24,000 160,000 Asset Values $ 13,200 1,980 34,980 15,840 $ 66,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases Cost Allocation Base $ 83,100 Number of employees 56,000 Square feet occupied 25,500 Asset values $ 164,600 Allocate each of the three indirect expenses to the four departments.
Exercise 22-5 (Algo) Departmental expense allocations LO P2 Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Employees Square Feet 34 17 Department Materials Personnel Manufacturing Packaging Total 68 51 170 Indirect Expense Supervision Utilities Insurance Total 32,000 16,000 88,000 24,000 160,000 Asset Values $ 13,200 1,980 34,980 15,840 $ 66,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases Cost Allocation Base $ 83,100 Number of employees 56,000 Square feet occupied 25,500 Asset values $ 164,600 Allocate each of the three indirect expenses to the four departments.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 26E: The ability to assign a cost directly to a cost object by means of a causal relationship is a....
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