Aleck Company's facility contains two producing departments, Cutting and Assembly, and two service departments, Maintenance and Administration. Maintenance Department cost is distributed based on square feet, and Administration Department cost is distributed based on number of employees. Service department costs are distributed to producing departments only. Producing department overhead rates are computed based on machine hours.
The estimated annual data are as follows:

Required:
Prepare an overhead distribution and compute factory overhead rates.

Transcribed Image Text:

Cuttingsembly Maintenance Administration Number of employees Square feet... Machine hours Factory overhead budget 150 21,000 25,000 100 9,000 20,000 40 4,000 30 3,000 $520,000 $400,000 $200,000 $150,000