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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

The following are selected operating data for the production and service departments of Bluestone Company for 2016.

 

   Departments  
 Service Production
 12 12
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 used12,00018,000 30,00060,000
Assessed value of equipment used$52,500$157,500 $315,000$525,000
Cubic yards of factory space used   220,000330,000
Machine hours   128,000512,000
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.

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