Manufacturing Overhead Distribution Worksheet

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

Building depreciation of $192,000 is allocated on the basis of square feet of floor space. Personal property taxes of $72,000 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 3-16.

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.

			Departments
	Service			Production
	1	2		1	2
Overhead costs (identified by department)
Indirect material	$96,800	$164,400		$50,880	$1,032,000
Indirect labor	$194,400	$288,000		$65,168	$2,878,000
Square feet of building floor space used	9,600	14,400		24,000	48,000
Assessed value of equipment used	$42,000	$126,000		$252,000	$420,000
Cubic yards of factory space used				176,000	264,000
Machine hours				102,400	409,600
Direct labor				$40,000	$800,000
Bluestone Company Overhead Distribution Worsksheet For the Year Ended December 31, 2016
	Service Dept. 1 Dept. 2		Production Dept. 1 Dept. 2		Allocation Basis
Directly identifiable with departments:
Indirect material	$Answer	$Answer	$Answer	$Answer
Indirect labor	Answer	Answer	Answer	Answer
Allocated to departments:
Building depreciation	Answer	Answer	Answer	Answer	Answer
Personal property taxes	Answer	Answer	Answer	Answer	Answer
Total overhead	$Answer	$Answer	$Answer	$Answer
Allocation of service departments:
Dept. 1	$Answer	Answer	$Answer	$Answer	Answer
Dept. 2	Answer	Answer	Answer	Answer	Answer
Total allocated overhead	$Answer	$Answer	$Answer	$Answer
Production Dept. 1	$Answer
Production Dept. 2	$Answer