Question

Franklin Co. has three departments: purchasing, human resources, and assembly. In a recent month the three departments incurred two shared indirect expenses. The amounts of the indirect expenses and the bases used to allocate them follow. Use this information to allocate each of the two indirect expenses across the three departments using the tables provided below.
Indirect Expense Cost Allocation Base
Supervision $85,000 Number of employees
Utilities and Insurance 38,000 Square feet occupied
Total 123,000

Departmental data for the company's recent reporting period follow.
Department Employees Square Feet
Purchasing 10 15,000
Human Resources 6 10,000
Assembly 20 25,000
Total 36 50,000
Supervision


Purchasing


Human Resources


Assembly


Total



Utilities and Insurance


Purchasing


Human Resources


Assembly


Total



Answer

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