Departmental Distribution of Estimated Overhead—Direct Method; Rate Calculation, wiltonen Company’s factory contains two producing departments, Cutting and Assembly, ahd two service departments, Maintenance and Administration. Maintenance Department cost is allocated based on square feet, and Administration Department cost is allocated based on number of employees. Service department costs are allocated to producing departments only. Producing department overhead rates are computed based on machine hours.LO9 The estimated annual data are as follows:

Cutting Assembly Maintenance Administration Number of employees. 150 100 40 30 Squarefeet. 21,000 9,000 4,000 3,000 Machinehours. 25,000 20,000 Overheadbudget. $520,000 $400,000 $200,000 $150,000 Required: Prepare a factory overhead distribution and compute overhead rates.

CGA-Canada (adapted). Reprint with permission.