Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Employees Square Feet Asset Values Materials 26 37,500 $ 10,950 Personnel 13 6,250 3,650 Manufacturing 52 68,750 38,690 Packaging 39 12,500 19,710 Total 130 125,000 $ 73,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Cost Allocation Base Supervision $ 83,800 Number of employees Utilities 63,000 Square feet occupied Insurance 29,000 Asset values Total $ 175,800
1. Use this information to allocate each of the three indirect expenses to the four departments.
2. Prepare a summary table that reports the indirect expenses assigned to each of the four departments.