Worldwide Chemical Co. consists of three production departments and four service departments. For the purpose of...

  

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Worldwide Chemical Co. consists of three production departments and four service departments. For the purpose of creating factory overhead rates, the accountant prepared the cost distribution sheet, shown on the next page, containing collected operational data. For the distribution of expenses of the service departments, the following procedures and order of distribution had been decided upon: a Utilities: 70% on metered hours- power, 30% on flor square footage-heating and lighting. b. Maintenance; Maintenance hours excluding Utilities c. Materials Handling; 45% to Preparation; 35% to Mixing; and 20% to Packaging d. Factory Office; Preparation, 50%; Mixing, 40%, Packaging, 10% Instructions: Complete the cost distribution sheet using the sequential (step-down) method. Factory overhead rates should be based on pounds handled in Preparation and Mixing (500,000 in Preparation; 300,000 in Mixing) and on direct labor cost of $10,000 in Packaging (Round all amounts to the nearest dollar or the nearest whole percent. AabbCcU Aal Emphasis 1 Heading 1 1 Heading 2 THeading 3 1 Heading 4 1 Heading 5 N Paragraph Styles Chapter Four Name Total Production Departments Service Departments Materialh Factery Preparatin Mixing Packaging Utilitia Maintensne Handling Office Operational data: 53,000 18,000 13,000 12,000 3,000 7,000 3,000 1,500 5,000 1,500 Floor space-sq. ft. 2,000 1,000 4,000 Maintenance hours. 600 1,000 600 300 - Metered hours. 1,800 700 500 300 200 Expenses: Indirect labor. $26,000 $4,500 $4,000 $3,500 $6,000 2,500 $3,500 $2,500 $2,000 Payroll taxes Indirect materials... 450 400 350 500 350 250 200 6,000 900 1,100 3,000 500 200 50 250 Depreciation Total 1,000 150 200 100 200 150 75 125 $35,500 S6,000 $5,700 S6,950 $7,200 $4,200 $2,875 $2,575 Distribution of service departments: Utilities: 70% metered hours. 30% sq footage. Maintenance Materials handling. Factory office. IS Bases: Pounds handled. Direct labor costs Rates Worldwide Chemical Co. consists of three production departments and four service departments. For the purpose of creating factory overhead rates, the accountant prepared the cost distribution sheet, shown on the next page, containing collected operational data. For the distribution of expenses of the service departments, the following procedures and order of distribution had been decided upon: a Utilities: 70% on metered hours- power, 30% on flor square footage-heating and lighting. b. Maintenance; Maintenance hours excluding Utilities c. Materials Handling; 45% to Preparation; 35% to Mixing; and 20% to Packaging d. Factory Office; Preparation, 50%; Mixing, 40%, Packaging, 10% Instructions: Complete the cost distribution sheet using the sequential (step-down) method. Factory overhead rates should be based on pounds handled in Preparation and Mixing (500,000 in Preparation; 300,000 in Mixing) and on direct labor cost of $10,000 in Packaging (Round all amounts to the nearest dollar or the nearest whole percent. AabbCcU Aal Emphasis 1 Heading 1 1 Heading 2 THeading 3 1 Heading 4 1 Heading 5 N Paragraph Styles Chapter Four Name Total Production Departments Service Departments Materialh Factery Preparatin Mixing Packaging Utilitia Maintensne Handling Office Operational data: 53,000 18,000 13,000 12,000 3,000 7,000 3,000 1,500 5,000 1,500 Floor space-sq. ft. 2,000 1,000 4,000 Maintenance hours. 600 1,000 600 300 - Metered hours. 1,800 700 500 300 200 Expenses: Indirect labor. $26,000 $4,500 $4,000 $3,500 $6,000 2,500 $3,500 $2,500 $2,000 Payroll taxes Indirect materials... 450 400 350 500 350 250 200 6,000 900 1,100 3,000 500 200 50 250 Depreciation Total 1,000 150 200 100 200 150 75 125 $35,500 S6,000 $5,700 S6,950 $7,200 $4,200 $2,875 $2,575 Distribution of service departments: Utilities: 70% metered hours. 30% sq footage. Maintenance Materials handling. Factory office. IS Bases: Pounds handled. Direct labor costs Rates

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Utilities 70 metered hours 720070 5040 30 sq ft 720030 2160 Department Metered hours Cost allocated ... View the full answer