Won Han 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 $ 82,600 Number of employees
Utilities 51,000 Square feet occupied
Insurance 23,000 Value of assets in use

Total $ 156,600
Departmental data for the company’s recent reporting period follow.
Department Employees Square Feet Asset Values
Materials 24 22,000 $ 6,100
Personnel 6 11,000 1,830
Manufacturing 48 55,000 36,600
Packaging 42 22,000 16,470

Total 120 110,000 $ 61,000

(1) Use this information to allocate each of the three indirect expenses across the four departments. (Omit the "$" & "%" signs in your response.)
Supervision expenses
Department % of Total Cost
Materials % $
Personnel
Manufacturing
Packaging
Totals % $

Utilities expenses
Department % of Total Cost
Materials % $
Personnel
Manufacturing
Packaging
Totals % $

Insurance expenses
Department % of Total Cost
Materials % $
Personnel
Manufacturing
Packaging
Totals % $

(2)Prepare a summary table that reports the indirect expenses assigned to each of the four departments. (Omit the "$" sign in your response.)

Supervision Utilities Insurance Total
Materials $ $ $ $
Personnel
Manufacturing
Packaging
Totals $ $ $ $

2.value:
1.00 points
Pane Company produces two types of glass shelving, rounded edge and squared edge, on the same production line. For the current period, the company reports the following data.
Rounded Edge Squared Edge Total
Direct materials $ 9,400 $ 21,700 $ 31,100
Direct labor 6,100 11,800 17,900
Overhead (300% of direct labor cost) 18,300 35,400 53,700

Total cost $ 33,800 $ 68,900 $ 102,700
Quantity produced 10,400 ft. 14,200 ft.
Average cost per ft. $ 3.25 $ 4.85

Pane’s controller wishes to apply activity-based costing (ABC) to allocate the $53,700 of overhead costs incurred by the two product lines to see whether cost per foot would change markedly from that reported above. She has collected the following information.

Overhead Cost Category (Activity Cost Pool) Cost
Supervision $ 2,148
Depreciation of machinery 28,680
Assembly line preparation 22,872

Total overhead $ 53,700

She has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driver used by the two product lines.

Usage

Overhead Cost Category
(Activity Cost Pool) Driver Rounded Edge Squared Edge Total
Supervision Direct labor cost ($) $ 6,100 $ 11,800 $ 17,900
Depreciation of machinery Machine hours 300 hours 600 hours 900 hours
Assembly line preparation Setups (number) 30 times 93 times 123 times

1. Assign these three overhead cost pools to each of the two products using ABC. (Do not round your intermediate calculations and round final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Product Assigned Cost
Rounded edge $
Squared edge $

2. Determine average cost per foot for each of the two products using ABC. (Do not round your intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Rounded edge Squared edge
Average cost per foot (ABC) $ $

3.value:
1.00 points
Below are departmental income statements for a guitar manufacturer. The manufacturer is considering dropping its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect.

BEST GUITAR
Departmental Income Statements
For Year Ended December 31, 2011
Acoustic Electric
Sales $ 103,400 $ 83,600
Cost of goods sold 44,575 47,350

Gross profit 58,825 36,250
Operating expenses
Advertising expense 5,045 4,290
Depreciation expense-equipment 10,120 8,510
Salaries expense 19,500 17,700
Supplies expense 1,990 1,730
Rent expense 7,055 5,960
Utilities expense 2,955 2,640

Total operating expenses 46,665 40,830
Net income (loss) $ 12,160 $ (4,580 )

(1) Prepare a departmental contribution report that shows each department’s contribution to overhead. (Input all amounts as positive values. Omit the "$" sign in your response.)

BEST GUITAR
Departmental Contribution Statements
For Year Ended December 31, 2011
Acoustic Dept. Electric Dept. Combined

 

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