Keegan CoHas Four Departments:
Purchasing,human Resources,manufacturing,and Assembly Departmental Data for the Company's Recent Reporting Period Follow

question 131

Essay

Keegan Co.has four departments:
purchasing,human resources,manufacturing,and assembly.In a recent month the four departments incurred two shared indirect expenses.The amounts of the indirect expenses and the bases used to allocate them follow.(1)Use this information to allocate each of the two indirect expenses across the four departments using the tables provided below.
$$\begin{array} { | l | r | l | } \hline \text { Indirect Expense } & \text { Cost } & \text { Allocation Base } \\\hline \text { Supervision } & \$ 85,000 & \text { Number of employees } \\\hline \text { Utilities and Insurance } & \underline { 38,000 } & \text { Square feet occupied } \\\hline \text { Total } & \underline { 123,000 } & \\\hline\end{array}$$ Departmental data for the company's recent reporting period follow.
$$\begin{array} { | l | l | l | l | } \hline \text { Pepartrent } & & & \\\hline \text { Purchasing } & & & \\\hline \text { Human Resources } & & & \\\hline \text { Manufacturing } & & & \\\hline \text { Assermbly } & & & \\\hline \text { Total } & & & \\\hline\end{array}$$

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Definitions:

Rationalization

The process of replacing traditional, spontaneous, and emotional forms of thought and action with calculated, efficient, and logical ones, often associated with modern industrial societies.

Implementation

The process of putting a decision or plan into effect; executing or enforcing actions.

Consumerism

The theory that an increasing consumption of goods is economically desirable and that an individual's happiness and well-being are strongly dependent on the acquisition of consumer goods.

Postmodern Society

A phase of society characterized by skepticism towards grand narratives and ideologies, embracing pluralism, diversity, and a questioning of universal truths.