The Demski Company applies manufacturing overhead to the Machining and Assembly departments. From the following data, prepare an overhead allocation schedule showing in detail the manufacturing overhead chargeable to each department. Some costs can be assigned directly (for example, indirect labor). Allocate machinery and equipment costs based on the cost of machinery and equipment, power based on horsepower rating, compensation insurance based on labor and indirect labor costs, and building-related costs based on floor space. Round all decimals to three places and all dollars to whole dollars.

DEMSKI COMPANY

Manufacturing Overhead Costs during the Month

Indirect Labor:

Machining..............................................................................$ 6,600

Assembly................................................................................ 3,600

Supplies Used:

Machining............................................................................... 1,500

Assembly................................................................................ 900

Taxes (machinery and equipment, $72; building, $145) ....... 217

Compensation Insurance........................................................ 906

Power..................................................................................... 300

Heat and Light....................................................................... 480

Depreciation: Building........................................................... 390

Depreciation: Machinery and Equipment............................... 360

Total........................................................................................ $15,253

Transcribed Image Text:

0ther 0perating Data Floor Space (square feet) Cost of Machinery and Equipment Direct Labor per Month Horsepower Rat ing Department: Machining Assembly Total 4,000 6,000 0,000 S35,000 25,000 60,000 s 2,000 10,000 $12,000 120 180