Supervision expensesAllocation BaseDepartmentMaterialsPersonnelManufacturingPackagingTotalsUtilitiesDepartmentMaterialsPersonnelManufacturingPackagingTotalsInsuranceDepartmentMaterialsPersonnelManufacturingPackagingTotalsPercent of Allocation BaseNumerator Denominator % of TotalCost to be Allocated Allocated CostAllocation BasePercent of Allocation BaseCost to be Allocated Allocated CostNumerator Denominator % of TotalAllocation BasePercent of Allocation BaseCost to be Allocated Allocated CostNumerator Denominator % of Total Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows.DepartmentSquare Feet Asset ValuesEmployeesMaterials4060,000$ 9,750Personnel87,5001,300ManufacturingPackaging6467,50033,8004815,00020,150Total160150,000$ 65,000The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases.Indirect ExpenseSupervisionUtilitiesInsuranceTotalCost$ 83,000 Number of employeesAllocation Base55,000 Square feet occupied25,000 Asset values$ 163,000Allocate each of the three indirect expenses to the four departments.

Cost allocation:The process of identifying cost and assigning the costs to the cost object is known…

Department Employees Square Feet Asset Values Materials 40 60,000 $ 9,750 Personnel 8 7,500 Manufacturing Packaging 64 67,500 1,300 33,800 48 15,000 20,150 Total 160 150,000 $ 65,000 e four departments share the following indirect expenses for sup Indirect Expense Supervision Utilities Insurance Total Cost Allocation Base $ 83,000 Number of employees 55,000 Square feet occupied 25,000 Asset values $ 163,000

Department Employees Square Feet Asset Values Materials 40 60,000 $ 9,750 Personnel 8 7,500 Manufacturing Packaging 64 67,500 1,300 33,800 48 15,000 20,150 Total 160 150,000 $ 65,000 e four departments share the following indirect expenses for sup Indirect Expense Supervision Utilities Insurance Total Cost Allocation Base $ 83,000 Number of employees 55,000 Square feet occupied 25,000 Asset values $ 163,000

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...

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