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	$121,000	$205,500		$63,600	$1,290,000
Indirect labor	$243,000	$360,000		$81,460	$3,597,500
Square feet of building floor space used	12,000	18,000		30,000	60,000
Assessed value of equipment used	$52,500	$157,500		$315,000	$525,000
Cubic yards of factory space used				220,000	330,000
Machine hours				128,000	512,000
Direct labor				$50,000	$1,000,000

Building depreciation of $240,000 is allocated on the basis of square feet of floor space. Personal property taxes of $90,000 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.