2 Manufacturing Overhead Distribution Worksheet The following are selected operating data for the production and service departments of Bluestone Company for 2016. Departments Service Production 1 2 Overhead costs (identified by department) Indirect material $72,600 $123,300 $38,160 $774,000 Indirect labor $145,800 $216,000 $48,876 $2,158.500 Square feet of building floor space used 7,200 10,800 18,000 36,000 Assessed value of equipment used $31,500 594,500 $189,000 $315,000 Cubic yards of factory space used 132,000 198,000 Machine hours 76,800 307,200 Direct labor $30,000 $600,000 Building depreciation of $144,000 is allocated on the basis of square feet of floor space. Personal property taxes of $54,000 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. Bluestone Company Overhead Distribution Worsksheet For the Year Ended December 31, 2016 Service Production Dept. 1 Dept. 2 Dept. 1 Dept. 2 Allocation Basis Directly identifiable with departments: Indirect material 72600 $ 1023300 * $ 38160 $ 7074000 x Indirect labor 1045800 X 2016000 x 48876 21058500 x Allocated to departments Building depreciation 14400 21600 36000 72000 Floor space Personal property taxes 2700 8100 16200 27000 Assessed value of equipo Total overhead $ 2035500 * $ 3069000 X $ 1039236 * $. 30031500 x Allocation of service departments: Dept. 1 $ -2035500 x 0 $ 94200 $ 1041300 x Cubic yards of factorys Dept. 2 0 -3069000 X 73800 -2095200 * Machine hours used Total allocated overheads 0 $ 0$ 3007236 XS 34068000 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 $ 3007236 x Production Dept. 2$ 34068000 x |