60.1K
Verified Solution
Link Copied!
Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows.
| Department | Employees | Square Feet | Asset Values |
| Materials | 40 | 31,000 | $ 7,600 |
| Personnel | 8 | 15,500 | 2,280 |
| Manufacturing | 64 | 77,500 | 50,160 |
| Packaging | 48 | 31,000 | 15,960 |
| Total | 160 | 155,000 | $ 76,000 |
The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases.
| Indirect Expense | Cost | Allocation Base |
| Supervision | $ 84,100 | Number of employees |
| Utilities | 66,000 | Square feet occupied |
| Insurance | 30,500 | Asset values |
| Total | $ 180,600 | |
Allocate each of the three indirect expenses to the four departments.
Answer & Explanation
Solved by verified expert
