The directors of Cliff-Hang Inc. has been critical of the product costing methods whereby factory overhead is charged to products on a factory-wide overhead rate. The chief accountant suggested a departmentalization of the factory for the purpose of calculating departmental factory overhead rates, accumulating the following estimated direct departmental overhead rate on an annual basis :

PRODUCING DEPARTMENTS:                 TOTAL COSTS ($)

Department No. 08                                                     35,622

Department No. 09                                                     44,949

Department No. 10                                                     47,575

SERVICE DEPARTMENTS :

Store-room                                                                  15,933

Repairs & Maintenance                                               21,351

General Factory Cost                                                  66,270

Other than above mentioned departmental overheads, the annual light and power bill is estimated at $9,300 and is allocated on the basis of electricity usage.

The following departmental information is provided:

                                                                                                            Repair &          Direct

                                    Electricity        Area                No. of              Maintenance    Labor

                                    Usage              Occupied         Requisitions    Hours              Hours

                                                            Sq. ft.

Dept 08                       20%                 21,000             124,200           4,800               80,000

Dept 09                       25%                 25,200             81,000             4,200               90,000

Dept 10                       30%                 29,400             40,500             6,000               80,000

Store-room                  3%                   03,360                 -                        -                       -

Repair & Maint.          12%                 05,040             24,300                  -                       -

Gen. Factory Cost       10%                      -                       -                       -                       -

The order and bases of distribution of service department expenses are as follows:

• General factory cost - area occupied
• Store-room expenses - estimated requisitions
• Repairs & maintenance - estimated repairs and maintenance hours

Required :

You are required to prepare a factory overhead distribution sheet with calculation of overhead rates for the producing departments based on direct labor hours.