Won Che Co. has four departments: materials, personnel, manufacturing, and packaging. In a recent month, the four departments incurred three shared indirect expenses. The amounts of these indirect expenses and the bases used to allocate them follow.
|Indirect Expense||Cost||Allocation Base|
|Supervision||$||80,000||Number of employees|
|Utilities||64,000||Square feet occupied|
|Insurance||16,800||Value of assets in use|
|Departmental data for the company’s recent reporting period follow.|
|Department||Employees||Square Feet||Asset Values|
Use this information to allocate each of the three indirect expenses across the four departments.
Prepare a summary table that reports the indirect expenses assigned to each of the four departments.
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