Woh 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.

Exercise 24-1 Departmental expense allocations LO P2

Woh 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	$	82,500	Number of employees
Utilities		50,000	Square feet occupied
Insurance		22,500	Value of assets in use
Total	$	155,000

Departmental data for the company’s recent reporting period follow.

Department	Employees			Square Feet			Asset Values
Materials		27			25,000		$	6,000
Personnel		9			5,000			1,200
Manufacturing		63			55,000			37,800
Packaging		51			15,000			15,000
Total		150			100,000		$	60,000

(1)	Use this information to allocate each of the three indirect expenses across the four departments.