Complete the cost distribution sheet

Question

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.