Manufacturing Overhead Distribution Worksheet

The following are selected operating data for the production and service departments of Bluestone Company for 2016.

Building depreciation of $48,000 is allocated on the basis of square feet of floor space. Personal property taxes of $18,000 are allocated on the basis of assessed values of equipment used. Costs for service departments 1 and 2 are allocated to production departments on the basis of cubic yards of factory space and machine hours, respectively.

Required

a. Prepare a 2016 overhead distribution worksheet for Bluestone Company similar to the one prepared for Exhibit 3-15.

Use negative signs with answers, when appropriate. Under the Allocation Basis column, select the basis used to calculate each allocation.

b. Compute the manufacturing overhead rates for production departments 1 and 2 using machine hours and direct labor costs, respectively, for allocation bases.

Round answers to two decimal places, when applicable.

Production Dept. 1	Answer
Production Dept. 2	Answer

Departments Service 1 2 Production 1 2 Overhead costs (identified by department) Indirect material Indirect labor Square feet of building floor space used Assessed value of equipment used Cubic yards of factory space used Machine hours Direct labor $24,200 $41,100 $48,600 $72,000 2,400 3,600 $10,500 $31,500 $12,720 $258,000 $16,292 $719,500 6,000 12,000 $63,000 $105,000 44,000 66,000 25,600 102,400 $10,000 $200,000 Allocation Basis Bluestone Company Overhead Distribution Worsksheet For the Year Ended December 31, 2016 Service Production Dept. 1 Dept. 2 Dept. 1 Dept. 2 Directly identifiable with departments: Indirect material $ $ $ $ Indirect labor Allocated to departments: Building depreciation Personal property taxes Total overhead $ Allocation of service departments: Dept. 1 $ Dept. 2 Total allocated overhead $ $ A A A ta $ $ $