Manufacturing Overhead Distribution Worksheet

The following are selected operating data for the production and service departments of Danville Company for 2019.

			Departments
	Service			Production
	1	2		1	2
Manufacturing overhead costs (identified by department)
Factory supplies used	$12,800	$21,440		$67,840	$137,600
Indirect labor	$25,920	$38,400		$86,400	$384,000
Square feet of building floor space used	7,200	10,800		18,000	36,000
Assessed value of equipment used	$28,000	$84,000		$168,000	$280,000
Cubic yards of factory space used				132,000	198,000
Machine hours				51,200	204,800
Direct labor ($10 per hour)				$250,000	$500,000

Building depreciation of $75,000 is allocated on the basis of square feet of floor space. Personal property taxes of $25,200 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 2019 overhead distribution worksheet for Danville 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.

Danville Company Overhead Distribution Worsksheet For the Year Ended December 31, 2019
	Service Dept. 1 Dept. 2		Production Dept. 1 Dept. 2		Allocation Basis
Directly identifiable with departments:
Indirect material
Indirect labor
Allocated to departments:
Building depreciation					Assessed value of equipmentCubic yards of factory spaceFloor spaceMachine hours used
Personal property taxes					Assessed value of equipmentCubic yards of factory spaceFloor spaceMachine hours used
Total overhead
Allocation of service departments:
Dept. 1					Assessed value of equipmentCubic yards of factory spaceFloor spaceMachine hours used
Dept. 2					Assessed value of equipmentCubic yards of factory spaceFloor spaceMachine hours used
Total allocated overhead

b. Compute the manufacturing overhead rates for production departments 1 and 2 using machine hours and direct labor hours, respectively, for allocation bases.

Round answers to two decimal places, when applicable.

Production Dept. 1
Production Dept. 2