Question:
Overhead Distribution Sheet. Montag Manufacturing Company applies factory overhead on the following bases:
|
Producing Dept.
|
|
A
|
B
|
|
Materials costs
|
25%
|
|
|
Direct labor hours
|
$2.50
|
At the end of the fiscal period the following accounts and their balances have been taken from the books and records:
|
Work in Process- Materials
|
$46,000
|
|
Direct Labor
|
29,450
|
|
Factory Overhead (Applied)
|
23,250
|
|
Indirect Labor
|
17,400
|
|
Factory Office
|
3.200
|
|
Building Charges (including depreciation, insurance, etc.)
|
4,000
|
|
Powerhouse Expenses (coal, labor, etc.)
|
2,800
|
Additional information
|
Producing Departments
|
|
|
A
|
B
|
Powerhouse
|
|
Direct materials
|
$33,000
|
13,000
|
|
|
Direct labor. . .
|
11,780
|
17,670
|
|
|
Direct labor hours
|
3,500
|
6,000
|
|
|
Power used
|
60%
|
40%
|
|
|
Floor space occupied
|
750 sq. ft.
|
750sq. ft.
|
500 sq. ft.
|
Indirect labor and factory office are apportioned in direct ratio to the cost of direct labor.
Required:
(1) A distribution sheet showing the distribution of factory overhead costs to producing departments and the powerhouse.
(2) The total and departmental over- or underapplied factory overhead after the powerhouse expenses have been allocated to the producing departments.