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Everything with an X is what was wrong. Manufacturing Overhead Distribution Worksheet The following are selected operating data for the production and service departments of
Everything with an "X" is what was wrong.
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 1 2 Overhead costs (identified by department) Indirect material $145,200 $246,600 $76,320 $1,548,000 Indirect labor $291,600 $432,000 $97,752 $4,317,000 Square feet of building floor space used 14,400 21,600 36,000 72,000 $63,000 $189,000 $378,000 $630,000 Assessed value of equipment used Cubic yards of factory space used Machine hours Direct labor 264,000 396,000 153,600 614,400 $60,000 $1,200,000 *Untitled - Notepad File Edit Format View Help Building depreciation of $288,000 is allocated on the basis of square feet DOO $630,000 of floor space. Personal property taxes of $108,000 are allocated on the basis of assessed values of equipment used. 000 396,000 Costs for service departments 1 and 2 are allocated to production departments on the basis of cubic yards of factory 600 614,400 space and machine hours, respectively. 000 $1,200,000 the basis of square feet of floor space. Personal property taxes of $108,000 are allocated Ln 2, Co 100% Windows (CRLF) UTF-8 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 $ 145,200 $ 246,600 $ 76,320$ 1,548,000 Indirect labor 291,600 432,000 97,752 4,317,000 Allocated to departments: Building depreciation 28,800 43,200 72,000 144,000 Floor space Personal property taxes 5,400 16,200 32,400 54,000 Assessed value of equip Total overhead $ 471,000 $ 738,000 $ 278,472 $ 6,063,000 Allocation of service departments: Dept. 1 $ (471,000) 0$ 278,472 x $ 87,120 x Cubic yards of factory s Dept. 2 0 (738,000) 35,143 x 702,857 X Machine hours used Total allocated overhead $ 0$ 0$ 129,343 x $ 1,073,657 X 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 $ 3.27 x Production Dept. 2 $ 10.34 xStep by Step Solution
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