Complete the cost distribution sheet

Question:

Overhead Distribution Sheet and Rate Calculation. Dunlap Chemical Co., Inc. consists of three producing departments: Preparation, Mixing, and Packaging; and four service departments: Utilities, Maintenance, Materials Handling, and Factory Office. For the purpose of creating factory overhead rates, the accountant prepared the cost distribution sheet shown below. It contains (a) operational data gathered by the accountant and (b) the expenses of the individual departments.

 Data Totals Producing Departments Service Departments Prepara- Lion Mixing Packaging Utilities Main- tenance Ma­terials Han- cluing Factory Office Operational data : Floor space(sq.ft) 53,000 10,000 12,000 16,000 3,000 3,000 5,000 4,000 Maintenance hours 6,820 1,860 2,480 930 620 620 310 Metered hours in Hundreds 4,000 1,400 1,600 320 200 320 160 Expenses: Indirect labor 522,000 S 3,800 S 2,600 52,400 53,500 54,000 S 3,300 S2,400 Payroll taxes. 2,522 440 532 420 230 355 320 225 Indirect materials 5,703 700 938 2,300 920 150 150 545 Depreciation 850 100 150 50 100 200 200 50 Total l \$31,075 S 5,040 \$ 4,220 \$5,170 \$4,750 \$4,705 S 3,970 \$3,220

For the distribution of the expenses of the service departments, the following procedures had been decided upon:

 Utilities: 80% on metered hours - power 20% on floor square footage 1.             Maintenance: Maintenance hours excluding utilities Materials Handling 48% to Preparation, 32% to Mixing, and 20% to Packaging Pounds Handled: 395,300 in Preparation 262,850 in Mixing 1.             Factory Office: Preparation, 40%; Mixing, 30%; Packaging, 30%

Required:

I) Complete the cost distribution sheet. No reciprocal charging should take place.

2) Factory overhead rates based on pounds handled in Preparation and Mixing and on direct labor cost of \$86,000 in Packaging.